Alcorn Metals just sold 1.5 million shares through an IPO offering.The shares were offered at $31.50 a share and all shares were sold.The firm received a total of $50,200,000 for this issue.What was the spread?

Name: Alcorn Metals just sold 1.5 million shares through an IPO offering.The shares were offered at $31.50 a share and all shares were sold.The firm received a total of $50,200,000 for this issue.What was the spread?
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Question

Quizplus · Accepted Answer

Spread = [$50,200,000 / ($31.50 × 1,500,000)] − 1 = 6.24 percent

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