Square issued 27 million shares at $9.00 per share for its IPO. Snap issued 200 million shares at $17 per share.
a. What is the underwriting discount as a percent of the IPO price for each IPO?
b. What percent of the total shares are liquefying selling shareholders for each IPO?
the selling stockholder named in this prospectus is selling 1,350,000 shares of our Class A common stock.Each share of Class B common stock is entitled to ten votes and is convertible at any time into one share of Class A common stock. Per share Total
Initial public offering price .......................................................................... $ 9.0000 $243,000,000
Underwriting discount(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.4950 $ 13,365,000
Proceeds, before expenses, to us . . . . . . . . . . . . . . . . . . . . . . . . $ 8.5050 $218,153,250
Proceeds, before expenses, to the selling stockholder . . . . . . . . . . . . . . $ 8.5050 $ 11,481,750
the underwriters have the option to purchase up to an additional 4,050,000 shares from us at the initial public offering price less the underwriting discount.