Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please show steps! GoDaddy went public in April of 2015 . While the estimated offer price filing range was $1719, the investment bankers, Morgan Stanley,
please show steps! GoDaddy went public in April of 2015 . While the estimated offer price filing range was $1719, the investment bankers, Morgan Stanley, JP Morgan, and Citigroup, ended up pricing it at $20.00 a share. However, the underwriter charged a fee of 5%. In the IPO, GoDaddy sold 26,000,000 shares to investors. At the end of the first day of trading, its closing price was $26.15. What were the total gross proceeds before underwriters' fees? How much did the underwriters get? What was the first day underpricing? Answers: $520 million; $26 million, 30.78\%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started