What is the primary function of a syndicate desk in an equity offering?

The primary function of a syndicate desk in an equity offering is to build an order book. In this context, the order book consists of the list of client orders for shares that are to be sold in a new stock issuance. The syndicate desk plays a crucial role in gauging investor demand and gathering orders from various investors, which helps underwriters determine the final pricing and allocation of the shares. This process is essential for ensuring that the offering is appropriately sized to meet market demand and maximize the issuer’s capital while also ensuring a smooth distribution of shares to investors.