What Does an Underwriting Manager Do?

Syndicated underwriting means that one underwriter leads, and several underwriters participate in underwriting activities, determine their respective underwriting amounts in a competitive manner, and bear the issuance risk according to their underwriting amounts, and charge a commission. Adopting this form of underwriting is the most common underwriting method in the international market. It introduces competition and risk mechanisms into the underwriting activities of stocks, which is beneficial to reducing the issue cost and reducing the issuer's issue risk.

Syndicate underwriting

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Syndicated underwriting means that one underwriter leads, and several underwriters participate in underwriting activities, determine their respective underwriting amounts in a competitive manner, and bear the issuance risk according to their underwriting amounts, and charge a handling fee. Adopting this form of underwriting is the most common underwriting method in the international market. It introduces competition and risk mechanisms into the underwriting activities of stocks, which is beneficial to reducing the issue cost and reducing the issuer's issue risk.

Chinese name

Syndicate underwriting

Attributes

Underwriting form

Main staff

Underwriter

Field

Economic sphere

Syndicated underwriting refers to the form of underwriting led by one underwriter with the participation of several underwriters. With this form of underwriting, each underwriter determines its own underwriting amount through competition with other underwriters, bears the corresponding risks and charges the corresponding fees. This form of underwriting is the most common form of underwriting. ^[1]

Syndicate underwriting

First: underwriting responsibility

The debts and risks borne by each member of the syndicate are limited to its underwriting portion. After the syndicate manager and the issuing company have entered into a contract, they then make a written contract with each member of the syndicate. The contract specifies the name and type of securities underwritten by each member participating in the underwriting, and authorizes the bank syndicate manager to be responsible for negotiating the underwriting with the issuing company. Matters. After the issuing company reports to the Securities Regulatory Commission, the syndicate manager shall separately notify each member in writing, and limit each member to confirm the underwriting and its amount again within a specified time to prevent changes.

Second: organize a syndicate

After the underwriter conducts an investigation and analysis, if it is found that a single investment bank cannot afford to issue all the securities, a syndicate can be organized, that is, multiple banks can form a group to issue securities. The syndicate manager is then responsible for signing the underwriting contract with the issuing company. If the issuing company is to increase capital to issue new shares to the old shareholders, the syndicate should underwrite the shares that the old shareholders are not willing to subscribe to; if the issuing company is issuing shares or bonds to an unspecified public, the syndicate should Underwriting all securities. ^[1]