Standby Underwriter

Standby Underwriter

An underwriter who agrees with the issuer of a security and its underwriters to be responsible for any unsold portion of the issue. That is, the underwriter agrees to buy the remainder of a new issue if it is unable to place its entirety with investors. This transfers the risk of the unsold portion of the issue from the issuer to the underwriter. This guarantees that the issuer will raise the capital it intends to raise, but leaves the underwriter with the possibility that it must purchase an issue with low value. As a result, standby underwriters charge a standby fee.
References in periodicals archive ?
was engaged as the standby underwriter for this offering.
NASDAQ-NMS:MAXI) announced today that its letter of intent with MDB Capital Group LLC to act as standby underwriter with respect to the Company's pending rights offering has been terminated.
Tucker Anthony Incorporated has been engaged as financial advisor and will act as the standby underwriter for this offering.
The Company intends to make arrangements with a standby underwriter pursuant to which the standby underwriter will agree to purchase from the Company sufficient shares of the Company's Common Stock at $44.
In that regard, Mineral Resources noted that its financial adviser, Griffiths McBurney & Partners, had confirmed that it was prepared to act as a standby underwriter for any rights not taken up by Anvil Range shareholders.
The seven business day period for Standby Underwriters to subscribe their quota of outstanding 229,759,087 new shares has expired and there has been no new uptake of shares.
will act as standby underwriters for any shares of Evercel Common Stock that are not purchased in the Rights Offering.
As the offering has been fully subscribed, the standby underwriters will not be acquiring any shares pursuant to their standby underwriting commitments.