ABC Company used an investment bank to do IPO. In IPO, the company sold 32,494 shares at $65 each. The investment bank charged 6% spread. At the end of the 1st day of trading, ABC's stock price closed at $103.
What is the indirect cost of the IPO to the company?
Do not enter $ in the answer box.
Calculation of indirect cost of the IPO to the company:
= {No. of shares (Price closed - Selling price)} * Rate Bank charged
= {32494 (103-65)} * 6%
= 74086.32
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ABC Company used an investment bank to do IPO. In IPO, the company sold 32,494 shares...
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