Your firm is selling 5 million shares in an IPO. You are targeting an offer price of $18.63 per share. Your underwriters have proposed a spread of 7.9%, but you would like to lower it to 5.9%.

However, you are concerned that if you do so, they will argue for a lower offer price. Given the potential savings from a lower spread, how much lower can the offer price go before you would have preferred to pay 7.9% to get $18.63 per share?