indication of interest


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Indication of interest

A dealer's or investor's interest in purchasing (not commitment to buy) securities that are still in the underwriting stage and are being registered by the Securities and Exchange Commission.

Indication of Interest

1. A situation in which a potential buyer tells an underwriter that he/she might wish to buy a portion of a new issue. Before a new issue, underwriters canvass potential investors, who may or may not book an order to buy a portion. Investors are required to be provided with a preliminary prospectus if he/she indicates interest. It is important to note that indications of interest are non-binding because it is illegal to sell a security that has not been issued. See also: Overbooked, Underbooked, Fully Subscribed.

2. More broadly, any situation in which a potential buyer makes an inquiry of a seller about a security. This shows that the buyer may wish to buy the security.

indication of interest

An investor's expression of interest in purchasing part of a new security issue before the issue comes to market. Brokers frequently seek indications of interest from clients even though the indications are not firm commitments to purchase the security. Compare circle. See also underbooked.
References in periodicals archive ?
Although more than six months have elapsed since the Board responded to your initial letter, your current indication of interest remains highly conditional, subject to completion of due diligence (which would allow Oaktree to abandon its interest for any reason or no reason at all) and your ability to raise the necessary debt financing.
Reading International said that its board of directors, after receiving input from management and its outside advisors, carefully evaluated the indication of interest.
Hershey's board of directors, after receiving input from the company's management and its outside financial and legal advisors, evaluated the indication of interest.
We unanimously concluded that our business plan is likely to deliver more value over time to our stockholders than the ASTAR indication of interest, and therefore, the indication of interest does not merit further consideration.
These advisors are scheduled to meet with ABX Air's Board of Directors this Friday, July 20, and I expect that ABX Air will have a response to ASTAR's indication of interest by next week.
NYSE: NSC) has unanimously rejected Canadian railroad operator Canadian Pacific's (TSX: CP) (NYSE: CP) unsolicited, low-premium, non-binding, highly conditional indication of interest to acquire the company, Norfolk Southern said.
The ABX Air Board of Directors, consistent with its fiduciary duties and commitment to enhancing value for shareholders, will evaluate this indication of interest as well as any formal offer actually made.
Beauty products company Avon Products Inc (NYSE: AVP) on Monday confirmed the receipt of an unsolicited, non-binding indication of interest from Coty Inc to acquire Avon for USD23.
To date, Pier 1 has received one preliminary indication of interest, but the entity submitting that indication of interest subsequently advised Pier 1 it would not continue further discussions with Pier 1 regarding a possible transaction.
Seagate Technology plc (NASDAQ:STX), a designer and manufacturer of hard disk drives, has received a preliminary indication of interest connected to a going private transaction, it declared on Thursday.
As of today, the Special Committee has not set any time schedule for reviewing any indication of interest, including the Proposal.
M2 EQUITYBITES-October 15, 2010-Seagate Technology receives preliminary indication of interest regarding going private transaction(C)2010 M2 COMMUNICATIONS http://www.