After the preliminary prospectus is approved for the IPO, the biggest responsibility for the issuing company and the investment bank becomes ensuring that the determined number of securities is sold and the firm is able to raise the intended amount. The IPO team-including the investment bankers, senior management team, lawyers, and investor relations team-conducts various activities. Which of the following statements are true about the activities involved in the IPO process? Check all that apply. The underwriter selects institutional clients and takes the IPO team on a roadshow to make presentations to these clients across different cities. If the investment bankers in the book building process realize that the demand for the securities is low, they can either reduce the offering price or consider withdrawing the IPO. Investment bankers usually underprice the IPO so that the IPO is oversubscribed and investors who get to participate in the IPO generate high profits. During the roadshow, the IPO team can divulge additional information to institutional investors that is not given in the preliminary prospectus to lure the institutional investors. Suppose ReapingTheBenefits Co. (RTB Co.) is one of the largest investment banking firms on Bay Street. Vision Stone Corp. hired RTB Co. as the underwriter for its IPO. RTB Co. has set the offering price of the share to $35 per share. The underwriters will charge a 5.2% spread. How many shares must the company sell to net $85 million, ignoring any other expenses? 3.07 million shares 2.43 million shares 3.58 million shares 2.56 million shares