flotation cost

Flotation Cost

The costs that a company incurs when it makes a new issue of either stocks or bonds. Flotation costs include the costs of printing the certificates, paying the underwriters, government fees, and other associated costs. As new issues are intended to raise capital for the company, it is important for it to ensure that it will at least make back what it spends.

flotation cost

The expense involved in selling a new security issue. This expense includes items such as registration of the issue and payment to the investment banker. Flotation costs depend on the size and riskiness of an issue as well as on the type of security to be sold.
References in periodicals archive ?
For example factors influencing on the cost of new capital and retained earnings: flotation cost issue and effect of taxes on the cost of equity capital.
It incurred a restructuring and flotation cost of pounds 1.68 million during the period.
Shares at flotation cost pounds 3.07; this week they have been available at pounds 2.25.
|FLOTCOST.sub.i^ Utility i's expected cost of the monitoring process, as measured by the firm's historical average flotation cost incurred in selling common stock, expressed as a percentage of the gross proceeds.
Quarterly results showed preparation for the flotation cost pounds 15 million, adding to bottom-line losses in the three months to June 30.
Issuing its first set of results since floating on the stock market last July, Ocado said pre-tax losses more than halved to pounds 12.2m - including pounds 3.5m of flotation costs - from pounds 25.5m a year earlier.
In its first set of results since floating on the stock market last July, Ocado revealed pre-tax losses more than halved to pounds 12.2m, including pounds 3.5m of flotation costs, from pounds 25.5m a year earlier.
In its first set of results since floating on the stock market last July, Ocado revealed pre-tax losses more than halved to pounds 12.2 million, including pounds 3.5 million of flotation costs, from pounds 25.5 million a year earlier.
We summarize our results when cash flotation costs and underpricing are used to measure issue costs.
In May the firm announced full-year pre-tax profit before flotation costs and property transactions up 27 per cent to pounds 14.9 million.
RDF said pre-tax profits before flotation costs and one-off accountancy matters had risen 46% to pounds 2.2m during the six months to July 31 as the firm had made a total of 40 series and one-off shows.
However, the deficit arose through investments to meet EU supply criteria, and the flotation costs, cleverly though these had been approached.