Dusty Corporation is an Australian company issuing an IPO with an issue price of $15 per share that is expected to raise about $100 million. Which of the following is likely to be true?

Question

Quizplus · Accepted Answer

The cost of an IPO can be significant, often ranging from 4% to 7% of the total amount raised. Given that Dusty Corporation aims to raise about $100 million, a cost of around $4 million (4% of $100 million) falls within the expected range for IPO expenses, including underwriting fees, legal fees, accounting costs, and other associated expenses.

Dusty Corporation Is an Australian Company Issuing an IPO with an Issue