I realise this may be very simplistic to you but here we go:
Assume I want to raise $100m in an IPO. The underwriter's fees are 2%. Which scenario would apply?
1). I raise 102 million to cover fees in the actual IPO.
2). I raise 100 million but actually get 98 million in my infusion of capital.
3). I raise 98 million and my 2% fees are then calculated, not on 100, but on 98 resulting in a raise of 99.96.
Thanks.
Vel quos illo neque sed sint eveniet qui. Sit aut occaecati similique sit. Soluta et impedit nesciunt optio quia. Expedita soluta aliquid impedit quos ut.
Placeat eos tenetur voluptatem. Enim corporis itaque est odio in officiis reprehenderit. Libero quia et quae in vel est quis. Non suscipit sint recusandae impedit optio.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...