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Calculating Costs of Issuing Stock TriState Corp. recently went public with an initial public offering in...

Calculating Costs of Issuing Stock TriState Corp. recently went public with an initial public offering in which they received a total of $50.00 million in new capital funding. The underwriter used a firm commitment offering in which the offer price was $30.00 and the underwriter's spread was $1.50. TriState also paid legal and other administrative costs of $950,000 for the IPO. What is the number of shares issued through this IPO?

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Answer #1

Net proceeds (not including legal and other administrative expenses) = $30.00 per share – $1.50 per share = $28.50 per share

Funds received from sale plus legal and other administrative expenses = $50,950,000

Shares sold = $50,950,000 / $28.50 per share = 1,787,719 shares

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