Playtech is a designer, developer, and licensor of software for the gambling industry. On 28 March 2006, Playtech raised approximately d265 million gross through an initial public offering of 103,142,466 ordinary shares at d2.57 per ordinary share. After the initial public offering, Playtech had 213,333,333 ordinary shares issued and outstanding.

Playtech received gross proceeds of approximately d34.3 million and net proceeds of d31.8 million. The ordinary shares that were sold to the public represented approximately 48 percent of Playtech’s total issued ordinary shares.

The shares commenced trading at 8:00 A.M. on the AIM market of the London Stock Exchange where Playtech opened at d2.74, traded 37 million shares between d2.68 and d2.74, and closed at d2.73.

1. Approximately how many new shares were issued by the company and how many shares were sold by the company’s founders? What fraction of their holdings in the company did the founders sell?

2. Approximately what return did the subscribers who participated in the IPO make on the first day it traded?

3. Approximately how much did Playtech pay in placement costs as a percentage of the new funds raised?