Definitions for "indication of interest"
A lead underwriter will gauge investor demand for an IPO so as to set its offering price.
If an investor is interested in buying an IPO, he or she will give the lead manager an order for a specific amount of stock. Since most IPOs are oversubscribed, indications of interest, or IOIs are usually for several times what the investor really wants. On some deals, the valuation of the IPO may be an issue. In this case an investor might give a limit order for the IPO. For example, the investor might say, "I'm in up to $15", meaning they will take shares if they are priced at $15 or less.
an order placed with the lead manager by an investor for a specific amount of stock in an IPO, often more than the investor wants, since IPOs tend to be oversubscribed; the investor may give a limit order, indicating the maximum price per share at which he or she will buy
Orders for a new securities offering which are placed prior to final registration...
(USA) A non-binding expression of interest by a de... Add a comment
Term denoting a client's interest in buying a security that is still in registration with the SEC. An indication of interest is not a firm commitment to purchase the security and is non-binding.
A nonbinding indication of a client received before the effective date, for the possible purchase of a new issue.