The Total Direct Costs of Underwriting an Equity IPO

The total direct costs of underwriting an equity IPO:

A) tend to increase on a percentage basis as the total proceeds of the IPO increase.
B) are generally between 7 and 9 percent, regardless of the issue size.
C) tend to be less than the direct costs of issuing bonds on a percentage of proceeds basis.
D) exclude the gross spread.
E) can be as low as 5.5 percent and as high as 25 percent of gross proceeds.