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TradeMe Group Limited (TradeMe hereafter) completed its IPO in 2011. The stock was offered at a price of $2.7 NZD per share. On the first

TradeMe Group Limited (TradeMe hereafter) completed its IPO in 2011. The stock was offered at a price of $2.7 NZD per share. On the first day of trading, the stock closed at $2.9 per share. What was the initial return on TradeMe? Who benefited from this underpricing and who lost? Please provide brief explanation for each.

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