RedHat EX415 Q&A - in .pdf

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NEW QUESTION: 1
FGH plans to issue a large number of shares to the public via an IPO.
It is considering either an offer for sale at a fixed price or an offer for sale by tender.
Which of the following would be an advantage to FGH of using the offer for sale by tender compared to the fixed price offer?
A. The shares will be sold to different investors at differing values thus maximising the capital raised.
B. Tenders are more attractive to less sophisticated investors thus maximising potential investment.
C. There is potential for reaching a higher share price thus maximising capital raised.
D. There would be more certainty over the issue price of the shares.
Answer: C

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