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Business, 26.02.2020 16:11 aliviadushane

Follow-on Public Offering A Brazilian company called Netshoes completed its IPO on April 12, 2017, and listed on the NYSE. Later, Netshoes sold 8 comma 250 comma 000 shares of stock to primary market investors in a follow-on offering at a price of $ 17.07, with an underwriting discount of 6.8%. Secondary market investors, however, were paying only $16.27 per share for Netshoes' 31 comma 025 comma 936 shares of stock outstanding. a. Calculate the total proceeds for Netshoes' follow-on offering. b. Calculate the dollar amount of the underwriting fee for Netshhoes' second offering. c. Calculate the net proceeds for Netshoes' second offering. d. Calculate market capitalization for Netshoes' outstanding stock prior to the follow-on issue. e. Calculate IPO underpricing for Netshoes' follow-on offering. f. Explain the follow-on underpricing for Netshoes.

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Follow-on Public Offering A Brazilian company called Netshoes completed its IPO on April 12, 2017, a...
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