Question
Question 2 IPO Underwriter Spreads and Money Left on the Table Below is a table with data for three companies that conducted and IPO. All
Question 2 IPO Underwriter Spreads and Money Left on the Table
Below is a table with data for three companies that conducted and IPO. All of these IPOs were firm commitment IPOs underwritten by the same underwriter.
Offer Price Per | First Closing Market Price Per | # Shares offered | Underwriter | |
Firm | Share (in $) | Share (in $) | (in $mn) | Spread (in %) |
A | $38.00 | $95.06 | 23 | 7.0% |
B | $33.00 | $34.19 | 478 | 2.0% |
C | $15.00 | $23.43 | 58 | 5.0% |
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For each of the three companies, calculate the $-amount (in $mn) of fees and discounts that the underwriter charged for the IPO.
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For each of the three companies, calculate how much money was left on the table (in $mn) in their IPOs.
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