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ABC Ltd issues a $25 million IPO providing proceeds to ABC of $4.5 per share, from an offer price to the public of $5 per

ABC Ltd issues a $25 million IPO providing proceeds to ABC of $4.5 per share, from an offer price to the public of $5 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $387,000. The company's share price increases by 14% on the first day. What is the underpricing cost to the company of issuing the securities?

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