Capital Markets (ECM / DCM)
Same deal: 10.0m base shares at $20.00. The greenshoe is fully exercised and the stock closed day one at $26.00. Compute incremental proceeds and money left on the table.
Model answer
Greenshoe = 15% × 10.0m = 1.5m additional shares. Incremental gross proceeds = 1.5m × $20.00 = $30.0m (the company nets ~$27.9m after the 7% spread). First-day pop = ($26.00 −…
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