Initial public offering On April 18,2019, the video conferencing company, Zoom completed its IPO on...
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Initial public offering On April the video conferencing company, Zoom completed its IPO on the Nasdaq. Zoom sold shares of Class A stock with vote per share at an offer
price of $ and 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 assuming that market value per share is the same for both classes of stock.
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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