Issue Price Calculator

Formula

The formula to calculate the Issue Price (ISP) is:

\[ ISP = \frac{GP}{S} \]

Where:

$ ISP $ is the Issue Price (\$/share).
$ GP $ is the gross proceeds (\$).
$ S $ is the number of shares issued.

What is Issue Price?

The Issue Price is the price at which new shares are offered to investors during an initial public offering (IPO) or other issuance of shares. It is calculated by dividing the total gross proceeds by the number of shares issued.

Example Calculation

Consider an example where:

Gross Proceeds (GP): $1,000,000
Number of Shares Issued (S): 100,000

Using the formula to calculate the Issue Price:

\[ ISP = \frac{1,000,000}{100,000} = 10 \text{ \$/share} \]

This means that the issue price for this example is $10 per share.