Groene Heuvels NV has just gone public. Under a firm commitment agreement, Groene Heuvels received €19.75 for each of the 5 million shares sold. The initial offering price was €21 per share, and the equity rose to €26 per share in the first few minutes of trading. Groene Heuvels paid €800,000 in direct legal and other costs and €250,000 in indirect costs. What was the flotation cost as a percentage of funds raised?