What were the proceeds for the issuer and the underwriter


Bellex Technologies agreed to complete its IPO on a best-effort basis. The company’s investment bank demanded a spread of 10 percent of the offer price, which was set at $28.60 per share. Three million shares were issued; however, the bank was overly optimistic and eventually was able to sell all of the stock for only $24.90 per share. What were the proceeds for the issuer and the underwriter? Proceeds to issuer ? Proceeds to underwriting?

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Financial Management: What were the proceeds for the issuer and the underwriter
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