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Consider the following simplified auction in an IPO. The offer size is 30 million shares. The investment bank managing the auction deems a 2832 a

  1. Consider the following simplified auction in an IPO. The offer size is 30 million shares. The investment bank managing the auction deems a 2832 a correct price range. The order book is reported in following table:

Bidder

Price ()

No. Of shares (in ml)

A

28.0

15.0

B

30.0

8.0

C

31.0

8.0

D

29.0

12.0

E

30.0

6.0

F

32.0

5.0

G

31.5

7.0

H

29.0

10.0

I

30.5

3.0

  1. Assuming a uniform price action: please, state what are the winning bids, the amount of money allocated to each bid (percentage of allocation), the overall amount collected by the issuer.
  2. Assuming a discriminatory price action: state what are the winning bids, the price paid by each bid and overall amount collected by the issuer.
  3. Assuming a discriminatory price action, please, explain which bidder is the real winner?

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