IPO: Bellex Technologies agreed to complete its IPO on a best- effort basis. The companys investment bank
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IPO: Bellex Technologies agreed to complete its IPO on a best-
effort basis. The company’s investment bank demanded a spread of 17 percent of the offer price, which was set at $30 per share. Three million shares were issued; however, the bank’s management was overly optimistic and eventually was able to sell all of the stock for only $28 per share. What were the proceeds for the issuer and the underwriter?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781119795438
5th Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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