How far does that support stretch? As far as you are willing to. For many, it isn't that far.
The share market exists to give companies money. There is no other reason.
Companies distribute shares to bring in cash, without raising the cash the company may fold. The company uses that cash to grow. If successful, everyone wins.
You can see an informative video on this here:
The fact that you may be able to profit on the market also through trading is only enabled by other people seeing further value in the company and choosing to buy the shares off you at a higher price.
Paying "over-the-odds" isn't for everyone, but this thread is specifically talking about an Underwriting Agreement. That means someone else has already put their hand up and said they'll happily pay "over-the-odds". Probably because they know that is the only way they will be able to take ownership of the amount of shares they want to, because they can't buy enough shares on-market at below that price.
LKE Price at posting:
9.3¢ Sentiment: Buy Disclosure: Held
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