it just seemed that 14.10 was a pretty nice discount, considering we were above $15....sure a buck under market on a 30 or 40 or dollar stock makes sense, but percentage wise this was a nice gift to someone.
A firm is never going to get the full amount that the shares sold for in the offering. Traditionally, the investment bank is going to take 7-8% of the proceeds from the offering. This is how they make their money and why investment banking can be so lucrative. If you read the press release carefully http://phx.corporate-ir.net/phoenix.zhtml?c=187112&p=irol-newsArticle&ID=1541939&highlight= , they clearly state that "The aggregate net proceeds received by the Company totaled approximately$66,420,000 after deducting underwriting discounts and commissions and the offering expenses paid by the Company." The underwriting discount is the spread between what the offering price was and the price Zhongpin actually received. There is no deception, no naked short-selling. This is business as usual for an offering.