Question
Suppose that in April 2019, Van Dyck Exponents offered 290 shares for sale in an IPO. Half of the shares were sold by the company
Suppose that in April 2019, Van Dyck Exponents offered 290 shares for sale in an IPO. Half of the shares were sold by the company and the other half by existing shareholders, each of whom sold exactly half of their existing holding. The offering price to the public was $16 and the underwriters received a spread of 6%. The issue was heavily oversubscribed and on the first day of trading the stock price rose to $111. (Do not round intermediate calculations. Round your answers to the nearest whole number.)
a-1. What were the proceeds of the issue to the company?
$
a-2. What were the proceeds of the issue to the shareholders?
$
b. How much commission did the underwriters receive?
$
c. How much money was left on the table?
$
d. What was the cost of the underwriting to the selling shareholders?
$
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