Ebb & Flow

In previous, more effervescent, IPO windows, books typically have been about four times oversubscribed. In the current, more sober window, that multiple has been cut in half. The result is that investors feel no pressure to place orders early in the bookbuilding process. Instead, buysiders can wait until a day or two before a pricing event, and use the leverage of a modestly full book to drive down prices.

"You still want a book to be four times oversubscribed, but in this market two times has been more the norm," said CIBC banker Peter Crowley. "In the heyday of the genomics bubble, anywhere from four to 10 times wasn't unheard of." ...