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Gross SpreadGross spread refers to the fees that an underwriter receives in exchange for helping an issuer raise debt or equity capital. Typically, the gross spread for an IPO is 7%, while the gross spread on a debt offering may range from under 1% to 5%+. For example, if a Company sells $100 million of shares in an IPO and the gross spread is 7%, the underwriting syndicate will receive fees of $7 million. These fees will be divided among the one or more underwriters hired for the offering.
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