Question
On April 18, 2019, the video conferencing company, Zoom, completed its IPO on the Nasdaq. Zoom sold 9,911,434 shares of Class A stock with one
On April 18, 2019, the video conferencing company, Zoom, completed its IPO on the Nasdaq. Zoom sold 9,911,434 shares of Class A stock with one vote per share at an offer price of $36 and an underwriter discount of $1.80 per share. Zoom's closing stock price on the first day of trading on the sec-ondary market was $62, and 24,070,086 Class A shares were outstanding. There were also 232,318,285 shares of Class B common stock with 10 votes each out-standing and held privately by Zoom insiders.
Required:
to. Calculate the total proceeds for Zoom's IPO.
b. Calculate the percentage underwriter discount.
c. Calculate the dollar amount of the underwriting fee for Zoom's IPO
. d. Calculate the net proceeds for Zoom's IPO.
and. Calculate Zoom's IPO underpricing.
F. Calculate Zoom's market capitalization assuming that market value per share is the same for both classes of stock.
g. What percentage of Zoom's total common stock (Class A plus Class B) do Class A stockholders own after the IPO? What percentage of votes do they control?
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Here are the calculations a Total proceeds for Zooms IPO Number of shares sold 9911434 Offer price p...Get Instant Access to Expert-Tailored Solutions
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