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 −…
The full, human-reviewed answer is in the bank.
Sign up free and Daily 10 serves you 10 questions a day from all 1,500+ — or go Pro for unlimited reps.
More from Capital Markets (ECM / DCM)
- Why does a company go public (IPO)? Give the main pros and cons.
- Walk me through the IPO process from start to finish at a high level.
- What is bookbuilding and how does the roadshow feed into it?
- How is the final IPO offer price determined?
- Why are IPOs often deliberately underpriced?
- What is the greenshoe (over-allotment option) and how does it work mechanically?