easy · Investment Banking rx-dcm-ecm
A company is pricing its IPO. The book is 15x oversubscribed with high-quality long-only institutional demand.
What is the likely result for the final pricing?
- The underwriters' gross spread will be reduced to reward investors.
- The price must be lowered to guarantee a 20% first-day pop.
- The underwriters will likely cancel the Greenshoe entirely to limit supply.
- The price will likely be set at or above the high end of the range
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