Underwriter's discount

Underwriter's discount

Gross Spread

In a public offering, the difference between the price an underwriter pays an issuer and the price at which it sells the offering to the public. That is, an underwriter pays the issuer an agreed-upon price to purchase an issue, which it then attempts to place with investors. When it places the issue, it charges the investor a certain price like any other trade. The difference is known as the gross spread; it forms the bulk of an underwriting firm's profits. See also: Fully subscribed, Overbooked, Underbooked.
References in periodicals archive ?
After deducting the underwriter's discount and other offering expenses, the company has raised net proceeds of approximately USD2.
Before the underwriter's discount and expenses, the company expects total gross proceeds from the public offering of USD4.
In addition, Gaylord Entertainment granted the underwriter an option exercisable for a period of 30 days commencing August 7, 2012, to purchase up to 846,469 additional shares of its common stock at the public offering price, less the underwriter's discount.
Upon deducting the underwriter's discount and other estimated offering expenses, the company expects net proceeds of approximately USD2.
Before the underwriter's discount and expenses, the company raised total gross proceeds from the public offering of approximately USD10m.
00 per share, and yielded gross proceeds of $95,959,072, and net proceeds to HomeStreet, after giving effect to the underwriter's discount and transaction costs, of $88,717,834.
After deducting the underwriter's discount and other estimated expenses and excluding the proceeds if any from the exercise of the warrants, the company has raised net proceeds of approximately USD23.
After deducting the underwriter's discount and other estimated offering expenses payable by Bovie, the net proceeds to the company are expected to be approximately USD 10.
7 million from its senior note offering, net of the underwriter's discount and expenses.
After subtracting the underwriter's discount and before estimated offering expenses, the company has raised total proceeds of approximately USD47.
The net proceeds of the offering to CBL, including the exercise of the underwriter's over-allotment and after underwriter's discount, will be approximately $115 million.
5 million of common stock; and Com21, Inc (Nasdaq:CMTO) has agreed to purchase $1 million of common stock at the offering price net of the underwriter's discount in a concurrent offering.