The way companies raise capital via a bookbuilding process is...

The way companies raise capital via a bookbuilding process is that the bookbuilders contact major institutional investors and substantial shareholders and ask them what they are willing to pay to buy a certain number of stocks. The more capital the company wants to raise, the steeper the discount is required to entice these investors to contribute. While the bookbuilders may try to set a higher price for Dacian Gold, the reality is that many of these major investors were likely to have made low-ball offers knowing the company needed a lot of capital. Hence, we are left with seeing a steeply discounted offering.