Type of corporation Companies that are owned by a group of investors, who could also be associated with the company's management, make initial public offerings. Such companies are referred to as Initial public offering performance When the demand for an initial public offering (IPO) of securities is less than the number of securities issued, the offering is deemed to be: Oversubscribed Undersubscribed WAC Inc. is going public and issuing 500,000 shares of common stock. The capital raised in the IPO will fund the company's proposed expansion. A Dutch auction is used to allocate shares in the WAC IPO. The following table shows the number of shares requested by potential investors in each row. Bids Bidder #1 Number of Shares Requested Price per Share 50,000 $60 100,000 Bidder #2 58 Bidder 33 56 Bidder #4 54 150,000 200,000 250,000 300,000 Bidder #5 52 Bidder #6 50 Ing table shows the number of shares re- Blds Price per Share $60 Bidder # 1 Bidder # 2 58 Bidder # 3 Number of Shares Requested 50,000 100,000 150,000 200,000 250,000 300,000 56 Bidder #4 54 Bidder # 5 52 Bidder # 6 50 What should be the firm's IPO offer price? O $54 $53 $56 $55