Your firm is selling 9 million shares in an IPO. You are targeting an offer price of $18.56 per share. Your underwriters have proposed a spread of 5.3% , but you would like to lower it to 3.8%. 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 5.3% to get $ 18.56 per share?

The offer price would need to drop to $ _____