indication of interest

Also found in: Acronyms, Encyclopedia, Wikipedia.

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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
There can be no assurance that the non-binding indication of interest will result in a transaction or on what basis or terms any transaction may occur.
Astar Air Cargo yesterday withdrew its "indication of interest" in acquiring fellow DHL subservice carrier ABX Air for more than $450 million in cash.
Amer Sports said that on 11 September 2018, in response to media speculation, it had confirmed the receipt of a non-binding preliminary indication of interest (the indication of interest) from a consortium comprising ANTA Sports Products Limited and the Asian private equity firm FountainVest Partners (the consortium) to acquire the entire share capital of Amer Sports.
In connection with Privet's latest indication of interest, the Hardinge board of directors formed a strategic alternatives committee comprised of Christopher DiSantis (chairperson), Mitchell Quain and Tony Tripeny, each of whom confirmed to the board of directors that he is independent and disinterested with respect to Privet.
(OTC: CTIG) reported that the recently formed special committee of the board of directors has retained Duff & Phelps Securities, LLC as independent financial advisor and Ice Miller LLP as independent legal counsel to the special committee to assist in its evaluation of the non-binding indication of interest made on March 7, 2013, by Fairford Holdings Ltd.
The company also announced it has received an unsolicited, non-binding indication of interest from a potential third-party acquirer.
The board of directors of ABX Air Inc (NASDAQ: ABXA) has reviewed ASTAR Air Cargo Holdings LLC's unsolicited indication of interest to acquire the company and has unanimously rejected the proposal.
After a sharp rise in its share price, JBA directors said they had received an "early indication of interest" which may lead to an offer for the company.
We hope that you and the members of the Board of Directors find this Indication of Interest compelling, and we look forward to working with you to complete a transaction," Privet stated in the letter made public in the filing.
M2 EQUITYBITES-September 12, 2018-Amer Sports confirms the price of indication of interest by consortium to acquire its shares
Global Banking News-September 12, 2018-Amer Sports confirms the price of indication of interest by consortium to acquire its shares