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Initial public offering On April 1 8 , 2 0 1 9 , the video conferencing company, Zoom completed its IPO on the Nasdaq. Zoom
Initial public offering On April the video conferencing company, Zoom completed its IPO on the Nasdaq. Zoom sold shares of Class A stock with vote per share at an offer price of $ and underwriter discount of $ per share. Zoom's closing stock price on the first day of trading on the secondary market was $ and Class A shares were outstanding. There were also shares of Class B common stock with votes each outstanding and held privately by Zoom insiders.
a 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.
e Calculate Zoom's IPO underpricing assuming that market value per share is the same for both classes of stock.
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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