Foweyman,If the underwriters do not want to end up with the...

Foweyman,

If the underwriters do not want to end up with the stocks they should not undertake the underwriting task. If what you're saying is true i.e. ending up with the stocks at 27c is bad for the underwriters, then that implies they haven't priced all the risks into the 27c sp.

IMO it has to be good for them one way or the other and that's why they agreed to the underwriting. I could be wrong, and If I am wrong, then that means these banks have not learnt from their past mistakes. That is, if they took this underwriting task without being prepared to end up with the stocks at 27c with a fairly high certainty that they'll make a decent profit in 6-18 months time, then they're again making risky business decisions.

IMO, they know that if they ended up with all the issued stocks at 27c they will still come out a winner. Which means they'll jack up the price in due course.