Sizing, Pricing, and Timing

Some of the tasks that are required in the run-up to an offering make investment bankers sound like gadgets advertised on a late-night infomercial—they size! They price! They time! Now how much would you pay? (For a typical IPO, about 7%, as discussed later in this chapter. But we digress.) Seriously, the experience and judgment that investment bankers bring to these critical functions is a huge part of their value to the issuer.

Sizing, pricing, and time decisions are interrelatedâ