An Accelerated Bookbuilding Agreement (ABA) is a type of financial agreement used in the securities market to raise capital quickly. It is typically used by companies that want to issue new shares to raise capital for acquisitions, investments, or to pay off debts.

Under an ABA, the company appoints an investment bank, known as the bookrunner, to sell the shares on their behalf. The bookrunner is responsible for gathering interest from potential buyers and negotiating the price and number of shares to be sold.

The process of an ABA is typically completed within one day, allowing companies to raise capital quickly and efficiently. This makes it a popular option for companies looking to raise capital in a short amount of time.

One of the key benefits of an ABA is that the price of the shares is usually set at a discount to the current market price, making the shares more attractive to investors. This can help to ensure that the shares are sold quickly, allowing the company to raise capital as soon as possible.

However, it is important to note that an ABA can also carry risks. The accelerated nature of the agreement can result in a lack of due diligence, leading to potential legal and financial issues if the shares are later found to be overpriced or not properly valued.

In conclusion, an Accelerated Bookbuilding Agreement is a financial agreement used to quickly and efficiently raise capital through the sale of new shares. While it can be a beneficial option for companies looking to raise capital quickly, it is important to consider the potential risks and ensure proper due diligence is conducted before entering into such an agreement.