Pangeat Inc. planned to offer 3.5 mln shares at $14 in an IPO. A day...
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Pangeat Inc. planned to offer 3.5 mln shares at $14 in an IPO. A day before the offering their underwriters suggested to change the offer to 5 mln shares at $28. Pangeat Inc. had an IPO on August 8th, 1998 -- 5 mln shares at $28 were offered (excluding the 15% overallotment). During the first day of trading, the price of the stock rose to a maximum of $73 and closed the day at $54. How much money did Pangeat leave on the table? For simplicity, disregard the overallotment shares and the underwriters spread.
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