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 ?
During the last 30 days, Wintergreen Advisers has received two unsolicited indications of interest in Consolidated-Tomoka Land.
eHealth Inc (NASDAQ:EHTH) has completed its review of strategic alternatives and received indications of interest to both acquire and invest in it during the process, it revealed on Saturday.
Following discussions with a number of strategic and financial parties, Saba has received multiple non-binding indications of interest regarding a potential acquisition of the Company.
The tender starts with the issue of preliminary tender documents with the intention to obtain indications of interest from potential tenderers.
We would expect to receive indications of interest within 4 weeks of the launch of the process.
With the bond offer expected to open within the next two weeks, we are now seeking preliminary indications of interest.
Bovespa: MMXM3) (TSX: XMM) ("MMX" or the "Company") has received indications of interest from certain financial investors interested in purchasing a minority stake in MMX's wholly-owned subsidiary LLX Logistica S.
The special committee engaged in a process which included receipt of indications of interest from several potential acquirors, including GS Capital Partners.
Names with the strongest indications of interest will be made available in the Live Auction.
Pink Sheets: NYFX) today announced that eight of the leading global broker-dealers have signed agreements for the real-time distribution of Indications of Interest (IOIs) and Advertised Trades (ATs) to the buy-side via NYFIX.
We were visited by hospitals from throughout the country and we have come away with indications of interest from multiple facilities throughout the US who are looking to become Luminary sites for the next stage in our product testing and development.
Subsequently, the Company's investment advisors contacted a number of potential acquirors and solicited indications of interest.