The callback mechanism refers to that when a stock is issued, institutional investors decide the issue price, and ordinary investors decide the share distribution ratio between institutional investors and ordinary investors. When the shares listed on the main board are sold by public subscription and institutional placement, the callback mechanism must be adopted, and whether the shares listed on the GEM adopt the callback mechanism is decided by the underwriter. Issuers and underwriters first draw up the stock issue price range, and make an inquiry to institutional investors, who determine the issue price through cumulative bidding. If the price set by institutional investors is low, ordinary investors can increase the oversubscription ratio by taking the initiative to subscribe, which will reduce the placement of institutional investors; If the price set by institutional investors is on the high side, the bid-to-cover ratio subscribed by ordinary investors will inevitably decrease, and institutional investors will get a lot of stocks. The callback mechanism establishes an effective interest balance mechanism between institutional investors and ordinary investors, which can solve the problem of the distribution ratio of stocks between institutional investors and ordinary investors with the help of the market itself, and is also a more reasonable way for market-oriented mechanisms to determine the stock issue price.
Request for IPO documents and subscription forms
Investors can know the distribution location of IPO documents and subscription forms through IPO documents of listed companies. In addition, investors can also inquire or obtain the details of the prospectus and subscription form and the subscription method of new shares from the sponsors, underwriters or collecting banks of relevant IPO activities.