Answer: $223,500,000
Explanation:
An Initial Public Offering is the first issuance of a Company's stock to the world. It is usually done through an Investment bank that underwrites the issuing and sells it at a price that they feel is right based on their Research.
In this scenario, the Underwriter thinks the amount that the stock should be offered at is $22.55 and so that is the price it will be offered at.
10,000,000 shares are to be offered.
$2,000,000 is to be taken as fees by the Underwriter.
The total money the company will make will therefore be,
= ( No. Of shares offered * Share Price) - Underwriting Fee
= (10,000,000 * 22.55) - 2,000,000
= 225,500,000 - 2,000,000
= $223,500,000
