A co-manager, in stock trading is an underwriter who collaborates with the lead manager to make sure that the Initial Public Offering (IPO) process is a success. Although they are not members of the lead management group, co-managers play a key role in targeting specific investor niches and conducting extensive research on the stocks of the company to increase their appeal.
Major Responsibilities of Co-Managers
Co-managers have the following major responsibilities:
- Working with the Book Running Lead Manager (BRLM) to reach more investors and increase the coverage of the offering
- Offering extra research ability to improve the knowledge of the company’s stocks and their potential
- Aiding in the distribution process by using their expertise and contacts to reach more investors
Participation in the IPO Process
Co-managers contribute valuable services to the IPO process by targeting niche investor groups that are not covered by the lead manager. In doing so, they increase the demand for the company’s stocks and, thus, ultimately make the offering more successful. Their research work also generates quality information regarding the company’s financials, operations, and future growth prospects, which can instill confidence among prospective investors.
Conclusion
Briefly, co-managers are valuable partners in the IPO process, collaborating very closely with lead managers to ensure the success of the offering. By focusing on niches of investors, performing extra research, and broadening distribution channels, co-managers are significant contributors to enabling companies to meet their capital-raising objectives and gaining recognition in the capital markets. Use Religare Online, – a reliable platform which provides expert advice and hassle-free execution of trades.