Question
In: Economics
A best efforts IPO underwriting comprised 5.8 million shares at an offer price of $28 per...
A best efforts IPO underwriting comprised 5.8 million shares at an offer price of $28 per share. The underwriter's fee was set at 5.85 percent. How many shares were sold if the issuer received $84,324,892?
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Expert Solution
Ans
underwriter's fee = 5.85% or 0.0585
Percentage of net amount received = 1 - 0.0585 = 0.9415
Hence
NO of share sold = 84,324,892 ÷ ( 28 × 0.9415)= 3,198,728.93
Rahul Sunny answered 2 years agoRelated Solutions
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