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 1
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 1 vote per share at an offer price of $37 and underwriter discount of $1.83 per share. Zoom's closing stock price on the first day of trading on the secondary market was $62.96 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 private by Zoom insiders.
A. Calculate total proceeds of the IPO.
B. Calculate the percentage underwriter discount.
C. Calculate the net proceeds for Zoom's IPO.
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