The principal underwriter or lead coordinator in the issuing of new stock, debt, or securities instruments is referred to as a Book Runner or a Bookrunner. In investment banking, the book runner is the primary underwriting firm that runs or is in control of the books. Book runners may also work with others to reduce their risk, such as those who represent firms in massive, leveraged buyouts (LBOs).What is a book runner?A book runner is the lead underwriter or lead manager in a syndicate of investment banks that serves as the manager of a new securities issue. The book runner is responsible for gathering orders from investors and allocating the securities.The role of the book runner is important because they are responsible for managing the new securities issue and making sure that it is successful. They work closely with the issuing company to make sure that the securities are priced correctly and that the right investors are interested in the issue.The book runner is also responsible for marketing the new securities issue to potential investors. They work with the issuing company to develop a road show that will convince potential investors to buy the securities.The book runner is typically the investment bank that has the closest relationship with the issuing company. They are also typically the investment bank that has the most experience underwriting new securities issues.If you are thinking about investing in a new securities issue, it is important to pay attention to the book runner. The book runner is responsible for the success of the new securities issue and they will work closely with the issuing company to make sure that the securities are priced correctly and that the right investors are interested in the issue.
