Hughes Technology Corp. recently went public with an initial public offering in

Question

Hughes Technology Corp. recently went public with an initial public offering in which it received a total of $90.66 million in new capital funding. The underwriter used a firm commitment offering in which the offer price was $18.65 and the underwriter’s spread was $1.50. Hughes also paid legal and other administrative costs of $1.95 million for the IPO.

Calculate the number of shares issued through this IPO. (Enter your answer in millions. Round your answer to 2 decimal places.)

The answer is not 5,286,297 or 5.29 or 5.28

Hughes Technology Corp. recently went public with an initial public offering in which it received a total of $90.66 million in new capital funding. The underwriter used a firm commitment offering in which the offer price was $18.65 and the underwriter’s spread was $1.50. Hughes also paid legal and other administrative costs of $1.95 million for the IPO.

Explanation / Answer

Hughes Technology Corp. Details Amt $ Net proceeds received                  90,660,000 Add: Legal & Admin Expenses paid                    1,950,000 a Net Proceeds from Issuing                  92,610,000 b Offer Price per share                            18.65 c Underwriter's spread per share                               1.50 d Net Proceeds from each share =b-c=                            17.15 e No of share issued=a/d=                    5,400,000 so No of share issued =5.40 million

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