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 ?
Note proceeds will be used to manage the cash flow needs of the authority and the service boards and to pay underwriter's discount. The notes are expected to sell via negotiation the week of May 8th.
Before the underwriter's discount and expenses, the company expects total gross proceeds from the public offering of USD4.1m.
After deducting the underwriter's discount and other offering expenses, the company has raised net proceeds of approximately USD2.1m.
Before the underwriter's discount and expenses, the company raised total gross proceeds from the public offering of approximately USD10m.
Upon deducting the underwriter's discount and other estimated offering expenses, the company expects net proceeds of approximately USD2.1m, or USD2.4m if the underwriter exercises its over-allotment option in full.
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 10.6m.
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 USD23.3m.
After subtracting the underwriter's discount and before estimated offering expenses, the company has raised total proceeds of approximately USD47.9m.
Before the underwriter's discounts and commissions and estimated offering expenses, the company expects total estimated gross proceeds of USD259.6m.
Total net proceeds (after underwriter's discounts and commissions) of the offering were approximately $87 million.
The net proceeds from the sale of the securities, after deducting the underwriter's discounts and other estimated offering expenses payable by the company, will be approximately $6.132 million.
The company expects net proceeds from the offering, excluding the underwriter's discounts and other offering expenses, to amount to around USD9.8m.