Few IPOs have garnered as much attention as social media giant Facebooks public offering on May 18, 2012. It was the biggest IPO in internet history, easily topping Googles IPO eight years earlier. Lets take a closer look at the IPO itself, as well as the payoffs to some of Facebooks early investors.

Begin by navigating to the SEC EDGAR Web site, which provides access to company filings: http://www.sec.gov/edgar.shtml. Choose Company Filings Search and pick search by Company Name. Enter Facebook and then search for its IPO prospectus, which was filed on the date of the IPO (May 18, 2012) and is listed as filing 424B4 (this acronym derives from the rule number requiring the firm to file a prospectus, Rule 424(b)(4)). From the prospectus, calculate the following information:

A. The underwriting spread in percentage terms. How does this spread compare to a typical IPO?

B. What is the fraction of the offering that comprised primary shares and the fraction that comprised secondary shares? How much money did the company raise through the IPO? How much money did the existing shareholders get from the IPO? And how much did the underwriters profit?

C. The size, in number of shares, of the greenshoe provision. What percent of the deal did the greenshoe provision represent?