Glossary
Anchor investor
M0.02Also called anchor book, anchor allocation.
An institutional investor allotted shares a day before a public offer opens, at a price within the band, with a lock-in on the shares received.
The anchor book serves two purposes. It signals institutional support to other investors, and it de-risks the issue for the sellers by placing a large block before the offer opens.
The names in the anchor list are disclosed and are worth reading. Long-only funds with a record of holding for years say something different from investors who have historically sold at the first opportunity.
The lock-in expiry is a date worth marking. Supply arrives then.