The competition to be the lead manager (bookrunner) in an initial public offering (IPO). This refers to the process of selecting an underwriter, i.e., the investment bank that will act as lead manager on an IPO. A company that is launching the IPO process invite potential underwriters to tour it (this involves an in-depth analysis of its operations and business). By a beauty pageant, a company can invite interest from the underwriters by making a good impression. Eventually, it would figure out which underwriter will do the best job with the IPO.

This process is also known as a beauty contest or a bake-off.