"I've assumed that as the rights are transferable, therefore what would the underwriter get? or would they get more fees or higher % discount for their trouble?"
Believe it or not, some of the rights always lapse, un-excercised.
And that's what the underwriters pick up in such a situation.
I'm just painting a possible scenario, as per the recent MSB CR
Sure, no one wants the SP to go lower than TERP, but it does happen and when it happens, the underwriter gets more shares - which is not a good look anyway, but the company still get their money.
Yes, you are right.
The company does get its dough, but not in a resoundingly glowing manner.
"Anyway, it is all academic"
For the time being, yes it is.
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