A company has resolved to list on the JSE. If the company wishes to raise equity of at least R1 billion and feedback from its roadshow (and prospectus, sponsor and bankers) has valued its shares at R20 apiece (intrinsic value), how many shares would the company have to issue if under-pricing is expected to be 20%? (Assume the company can issue any amount of shares)

a. 62 500 shares b. 125 000 shares c. 200 000 shares d. 1000 000 shares