Cork & Kerry Co. is currently privately held by three large private equity firms. JPMorganChase's investment banking arm was tasked to sell the equivalent of 5% of the outstanding share of C&K Co. in an initial public offering, with the PE firms holding the rest of the shares. The IPO price was set a $12.75/share. At the end of the first day of public trading, the shares of C&K Co. were priced at $10.50/share. Which of the following statements are correct? Mark all the correct statements.

Group of answer choices

a) The initial issue was overpriced.

b) The private equity owners reaped significant gains as a result of the IPO.

c) The private equity owners lost a signficant amount of money as a result of the IPO.

d) The initial issue was underpriced.