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 R10 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. 100 000 000
• B. 125 000 000
• C. 1 000 000 000
• D. 150 000 000