In an IPO, from whom do underwriters obtain shares exactly?
I know underwriters obtain a lot of shares, distribute those shares amongst a syndicate, and then resell those shares to institutional investors. However, who exactly are underwriters obtaining their shares from? Do private equity & venture capital investors sell their shares to the underwriter pre-IPO? Do they create brand new shares and dilute the pre-IPO shareholders? Both?
Numquam sunt id vitae omnis et aut nostrum. Repellat suscipit minus sunt ducimus odio.
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...