Problem:
Round Tree software is going public using a auction IPO. The firm has received the following bids:
Price ($) Number of shares
14.00 100,000
13.80 200,000
13.60 500,000
13.40 1,000,000
13.20 1,200,000
13.00 800,000
12.80 400,000
Assuming Roundtree would like to sell 1.8 million shares in its IPO, what will the winning auction offer price be?