Question
On April 27, 2018, DocuSign, a California company that provides technology to enable digital signatures on important documents, conducted its initial public offering (IPO) of
On April 27, 2018, DocuSign, a California company that provides technology to enable digital signatures on important documents, conducted its initial public offering (IPO) of common stock. In the primary market the companys shares were priced at $29 per share, but after one day of trading on the Nasdaq, the share price closed at $39.73. The company sold 21.7 million shares int the offering.
a. To what extent (in dollars and on a percentage basis) was DocuSigns stock underpriced in its IPO?
b. How much cash (before deducting fees to investment banks) did DocuSign raise? How much more would it have raised if the shares had not been underpriced?
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Authors: Marta Borda, Simon Grima, Ilona Kwiecien
2020th Edition
3030496546, 978-3030496548
