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LG 5 5 P 2 - 3 Initial public offering On April 1 8 , 2 0 1 9 , the video conferencing company, Zoom,

LG55 P2-3 Initial public offering 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 secondary 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 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.
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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