Consider the following IPO deal: On August 10, 2012, Manchester United PLC (MANU), a professional soccer team in the English Premier League, went public with the sale of 16,666,667 shares of Class A ordinary common shares for $14 per share. The sale, which raised $233,333,338, was led by the Jeffries Group, Inc. and conducted with assistance from Credit Suisse Group AG and JP Morgan. A variety of other banks across the world participated in the sale by offering shares to their customers. Beginning on August 9, 2012, and running for two weeks, roadshows were conducted in the United States by one management team and across Europe and Asia by a second team of MANU executives. What was the purpose of the roadshows conducted by MANU's management and its investment bankers? To pre-book sales of shares with favorite investors before the issue is made available to the general public. To identify potential investor interest given the offering price range described in the registration statement and build a book of interested investors. The underwriter in the IPO process has several responsibilities. True or False: Underwriters sell IPO shares only to their institutional clients. True False Assume that a stock-issuing firm has a choice between a private placement selling the shares for $25.00 per share or a best efforts offering that will sell all available shares at the prices described in the following probability distribution: Best efforts expected probability distribution Probability Selling price Lowest quoted price 35% $20.00 Mid-range price 35% $24.00 Highest quoted price 30% $28.00 Assuming that the issue is fully subscribed, or sold, which method would generate the most capital for the issuing firm? Best efforts sale Private placement