Initial Public Offering of Amphastar Pharmaceuticals Assignment - 2

Initial Public Offering of Amphastar Pharmaceuticals - Assignment Example This research will begin with the statement that the business of Amphastar Pharmaceuticals is the development, production and the marketing of both generic and proprietary inhalable and injectable chemicals in the USA. Currently, the company is selling fifteen products, while at the same time in the process of developing thirteen more proprietaries as well as seven generic product portfolios, which will feature in the market in the near future. Â  The company prides more in its high technical and technological capability that is the main business strength that enables the company overcome competition in its field, through the introduction of innovative technologies such as the production of a variety of pre-filled syringes, and metered-dose inhalation technology. The terms of the Initial Public Offering of the Amphastar Pharmaceuticals shares is through the use of prospectus, which acts as the registration statement for the shares, and the copies of the prospectus were being offered by the underwriters of the company shares, Jefferies LLC, from their offices. Thus, the press statements and advertisements of the IPO did not constitute an offer for sale, until the prospective buyer of the shares had obtained the copy of the prospectus and filled it. Therefore, the shares had been divided into various categories, comprising of 4,640,000 common stock shares that were directly offered by Amphastar Pharmaceuticals and common stock 3,360,000 shares that were being offered by the company’s stockholders. Additionally, the underwriters of the company, Jefferies LLC, are reserved 1,200,000 additional shares which were available for over-allotment, offered as an option for the prospective buyers to buy more shares. The company is offered 5,800,000 shares at an initial price of $7 per share, which constituted $40,900,000, but the Pharmaceutical Company paid a total of $6,200,000 in brokerage commissions and underwriting discounts, thus remaining with a total of $34, 700,000. The percentage of the commission to the broker-dealers, as well as the underwriter's discounts and other IPO issuing expenses, amounted to $6,200,000 of the total 40,900,000, which is approximately 15.2%.