Question of the day
2026-10-23
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.
Answer it out loud first — like you would in the room. Then check yourself:
Reveal the model answer
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 − $20.00)/$20.00 = 30%. Money left on the table on the base 10.0m primary shares = ($26.00 − $20.00) × 10.0m = $60.0m; including the 1.5m greenshoe shares sold at $20, total is ($6.00 × 11.5m) = $69.0m.
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