Small investors sees syndicate equity financing as a good opportunity.
A group of investors known as an equity syndicate decides the price of an equity IPO before it goes public. The equity syndicate determines this price by taking into account a number of variables, including the hedge risk and the company's financial situation. Any equity syndicate has a relatively small membership, which is often made up of senior investment bank personnel.
Equity syndicates conduct the majority of their own hiring through lateral hires and recommendations from friends and family. In general, one needs to have a lot of experience in corporate finance and ECM to join the equity syndicate. According to estimates, there are probably fewer than 100 people who belong to equity syndicates globally.
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