QUESTION ONE a) Explain the process of the book-building pricing-mechanism in IPOs? [32 marks] b) 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 B D E 28.0 30.0 31.0 29.0 30,0 32.0 31.5 29.0 30.5 15.0 8.0 8.0 12.0 6.0 5.0 7.0 10.0 3.0 F G H I i. 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, ii. Assuming a discriminatory price action: state what are the winning bids, the price paid by each bid and overall amount collected by the issuer. iii. Assuming a discriminatory price action, please, explain which bidder is the "real" winner? [18 marks] [TOTAL: 50 MARKSI