RE: PURE GOLD MINING INC. ANNOUNCES INCREASE TO BOUGHT DEAL FINANCING9 Apr 2021 10:36
No its like this.
The underwriters get paid a fee to underwrite the placing - they then place the new shares with their clients - if the placing is oversubscribed they can come back for more shares but these are not underwritten they are just new bonus shares - the underwriters dont care if the share price goes up in the future - their job is to wholesale big blocks of shares out to the market and not get caught with any shares left on their books at the end of the sales process as they then have to own them as they are underwritten.
If the company is strong then underwriting is money for old rope - well new rope in fact - but its an easy fee.
Dont assume that brokers, MM, corporate finance banks care if the SP rises or not, they really dont, they care about their bonuses / commissions, their spread, their fees and their clients in that order and in fact private investors nobody cares about at all unless you can help with the previous list in a significant way.
I worked in investment banking - its the truth.
RB