BPP study text example "Offer for sale by tender" page 45

Hi John,

Not sure if you have BPP study text available to you, but if you do, could you help to understand solution to part (a) of the example in BPP study text.

I’m not sure why they calculate cumulative number of shares in (a).

From my point of view to maximize the total amount raised (i) it would make sense to issue the most number of shares applied for at their highest price. So my solution to this as follows with total $14,525,000.00 net of issue cost raised as a result. Possibly I just simply misunderstood something in the info given in the question. Many thanks in advance for your help!

Price no. of shares Amount raised ($)
6 50,000.00 300,000.00
5.5 100,000.00 550,000.00
5 300,000.00 1,500,000.00
4.5 450,000.00 2,025,000.00
4 1,100,000.00 4,400,000.00
3.5 1,500,000.00 5,250,000.00
3 500,000.00 (bal.) 1,500,000.00
4,000,000.00 15,525,000.00

Less issue costs -1,000,000.00

14,525,000.00