Module III· ECM — IPO ProcessIntermediate
Question
Middle-market case: SoftwareCo plans IPO with issue size 400. Bookrunner fee 4%, lawyers 5, auditor 3, marketing 2. Calculate total IPO costs.
Answer
Bookrunner fee equals 4% x 400 = 16. Add lawyer fee 5, auditor 3, and marketing 2. Total IPO costs = 16 + 5 + 3 + 2 = 26. As a percentage of issue size, total costs are 26 / 400 = 6.5%.