Alco Metals just sold 2.5 million shares through an IPO offering.The shares were offered at $25.50 a share and all shares were sold.The firm received a total of $67,250,000 for this issue.What was the spread?

Name: Alco Metals just sold 2.5 million shares through an IPO offering.The shares were offered at $25.50 a share and all shares were sold.The firm received a total of $67,250,000 for this issue.What was the spread?
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Question

Quizplus · Accepted Answer

Spread = [$67,250,000/($25.50 × 2,500,000)] - 1 = 5.49 percent

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