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Re-Offer Price

What is 'Re-Offer Price'

A price at which the underwriting syndicate of a debt issue resells the bonds to public investors. The syndicate will purchase the bonds for a specified amount from the issuing firm and re-offer the bonds to the public, usually at a different price.

Explaining 'Re-Offer Price'

An underwriting investment bank may facilitate a debt issue by agreeing to purchase all of the bonds for a price below face value. Having the underwriters purchase the bond issue, instead of passing the sale onto the public, removes the company's risk of not selling the entire issue. The investment banker will re-offer the bonds to public investors at a higher price, which may be above (premium) slightly below (discount) par value. In a serial issue, most common to municipal GO bonds, the first bonds to mature are frequently at a premium with a higher coupon rate. The last bonds to mature in the offering are sometimes sold at a discount, but carry a lower coupon rate.


Further Reading


Negotiation and the IPO offer price: A comparison of integer vs. non-integer IPOs
www.jstor.org [PDF]
… Un- der this negotiation hypothesis, the frequency of integer pricing should be an increasing function of the offer price and the degree of uncertainty … We examine a relatively unexplored aspect of IPO pricing, the information content of integer vs. non-integer offer prices …

The impact of pricing mechanism reform on underpricing of initial public offerings in ChinaThe impact of pricing mechanism reform on underpricing of initial public offerings in China
www.tandfonline.com [PDF]
… Un- der this negotiation hypothesis, the frequency of integer pricing should be an increasing function of the offer price and the degree of uncertainty … We examine a relatively unexplored aspect of IPO pricing, the information content of integer vs. non-integer offer prices …

IPO underpricing in ItalyIPO underpricing in Italy
www.tandfonline.com [PDF]
… Un- der this negotiation hypothesis, the frequency of integer pricing should be an increasing function of the offer price and the degree of uncertainty … We examine a relatively unexplored aspect of IPO pricing, the information content of integer vs. non-integer offer prices …

The market performance of Italian IPOs in the long-runThe market performance of Italian IPOs in the long-run
papers.ssrn.com [PDF]
… Un- der this negotiation hypothesis, the frequency of integer pricing should be an increasing function of the offer price and the degree of uncertainty … We examine a relatively unexplored aspect of IPO pricing, the information content of integer vs. non-integer offer prices …

Practices of system security pricingPractices of system security pricing
ieeexplore.ieee.org [PDF]
… Un- der this negotiation hypothesis, the frequency of integer pricing should be an increasing function of the offer price and the degree of uncertainty … We examine a relatively unexplored aspect of IPO pricing, the information content of integer vs. non-integer offer prices …


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