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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,
LG P Initial public offering On April the video conferencing company, Zoom, completed its IPO on the Nasdaq. Zoom sold shares of Class A stock with one vote per share at an offer price of $ and an 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. 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?
LG P Initial public offering On April
the video conferencing company, Zoom,
completed its IPO on the Nasdaq. Zoom sold
shares of Class A stock with one vote per share at an
offer price of $ and an 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.
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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