FPOs and book building

A Further Public Offering is an additional sale of shares by a company already listed. The mechanics of applying are the same as an IPO. What differs is that you can see the company's history, its published results, and a market price — so you have far more to judge it on.

Book building

Most Nepali IPOs are priced at par by convention. Book building is an alternative where institutional investors bid first, and their bids establish the price the public then pays.

The argument for it is that a price set by informed bidding reflects value better than a fixed convention. The argument against is that it removes the built-in discount that made par-priced issues so reliably profitable for retail applicants.