Question
Your investment bankers price your IPO at $14.64 per share for 10.1 million shares. If the price at the end of the first day of
Your investment bankers price your IPO at $14.64 per share for 10.1 million shares. If the price at the end of the first day of trading is $17.16 per share,
a. what was the percentage underpricing?
b. how much money did the firm miss out on due to underpricing?
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Finance Directors Handbook
Authors: Glynis D Morris, Sonia McKay, Andrea Oates
5th Edition
1566768691, 978-1566768696
