Who exactly is responsible for structuring IPOs within a bank? I realize that ECM will be contacted within a bank to determine the appropriate pricing but who is then responsible for structuring the IPO and taking the company public? I've searched throughout the site and on the web, but nothing has been really too clear. Also, who are some of the more common underwriters/co-managers in Chicago? Appreciate the help.

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Scratchy, what's your opinion? Comment below:

Within ECM you have three groups: Origination, Execution, Syndication.

The origination team can be merged into a coverage group or into an m&a team. Basically that's the team which does the pitching to clients and tries to get mandates.

The execution team deals with official documents (prospectus and other mandatory fillings) and also deals with lawyers etc.

They Syndication team is very close the markets. In fact, its desk is next to traders & sales. Its job is to contact investors to test their appetites and to evaluate how much they would offer. It also deals with the sales force to sell the paper. It builds the book of orders and therefore decide how much each investor is going to receive (if the transaction is over subscribed). Another job it does is to keep up with all deals in ECM and make some xls files with the main information (princing, number of shares etc) to be sent to the origination team.

The origination team usually leads the whole thing since it is the closest to the clients and knows exactly what they want.

BUT, it depends on banks since the structure can be different. The ECM bashing we have in this forum is due to misunderstanding of how ECM works and people mistake Origination with Execution or Syndication. Origination is definitely a corporate finance job and is usually done by coverage or m&a bankers whereas the equity syndication is more related to markets.

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Millhouse, what's your opinion? Comment below:

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