If the investment bankers retained $1.26 per share as fees, what were the net proceeds to eBay? What was the market capitalization of the new shares of eBay?
eBay, Inc., went public in September of 1998. The following information on shares outstanding was listed in the final prospectus filed with the SEC.
In the IPO, eBay issued 3,500,000 new shares. The initial price to the public was $18.00 per share. The final first day closing price was $44.88.