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 ?
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.
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.
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.
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.
M2 EQUITYBITES-October 15, 2010-Seagate Technology receives preliminary indication of interest regarding going private transaction(C)2010 M2 COMMUNICATIONS http://www.