Reference no: EM132909706
-ABC Ltd., a technology company, issues a $47.2 million IPO providing proceeds to ABC of $5.31 per share, from an offer price to the public of $5.9 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $164,000. The company's share price increases 5.6 per cent on the first day. What is the total amount of the underwriter's spread (in millions of dollars to the nearest three decimal places; don't use the $ sign eg 7.897)?
-A company is planning a new plant and needs to raise (net of underwriting cost) $19.74 million to finance it. The company plans to raise the money through a general cash offering priced at an offer price of $3 a share. The underwriters charge a 6 per cent spread. How many shares does the company have to sell to achieve its goal (in millions to three decimal places)? (Hint: required amount/(1-spread) = issue amount)
-ABC Ltd., a technology company, issues a $18 million IPO providing proceeds to ABC of $2.7 per share, from an offer price to the public of $3 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $402,000. The company's share price increases 16 per cent on the first day. What is the total cost to the issuer of the IPO (in millions of dollars to the nearest three decimal places; don't use the $ sign eg 7.897)?
-ABC Ltd issues a $20 million IPO providing proceeds to ABC of $3.6 per share, from an offer price to the public of $4 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $378,000. The company's share price increases 10 per cent on the first day. What is the underpricing cost to the company of issuing the securities? (in millions of dollars to the nearest three decimal places; don't use the $ sign eg 7.897)?
-When ABC Company went public in September 2008, the offer price was $4.49 per share and the closing price at the end of the first day was $6.99. The company issued 7 million shares. What was the loss to the company due to under-pricing? (in millions of dollars to the nearest two decimal places; don't use $ sign eg $4.5766 million is 4.58)
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