conditions to the demerger, page-6

Neo - Underwritten raisings are typically "underwritten" by a broker. Usually though, the broker does not wear the risk of failure to place stock as they sub-underwrite to investors (instos and HNWs) for a few hundred basis points (say 2 to 3% of the 5ish% they are paid).

Normally, a broker will only underwrite an issuance is they have 1) identified demand; and 2) are able to sub-underwrite most of the risk away. Thus, they are only on the hook if investors flee and sub-underwriters reneg.

As for Audeo, Leerink etc will do some heavy marketing and sound out investors. If there is demand, they will most likely execute an underwriting agreement (and then sub out the risk). If there's little demand they'll tell Audeo to look elsewhere.


Cheers