Problem:
In the IPO, the firm issued 3,000,000 new shares. The initial price was $18.00/share with investment bankers retaining $1.26 as fees. The final first-day closing price was $23.50
Q1. What were the total proceeds from this offering? What part by the investment bankers? What percent of the offering is this?
Q2. Mr. Doerr of Kleiner Perkins Caufield & Byers owned a significant number of shares. What was the market value of these shares at the end of the first day of trading?
Q3. What was the market value of Amazon.com following its first day as a publicly held company?
|
Number of Shares |
Percentage of |
|
|
|
Shares Outstanding |
| Name and Address |
Beneficially Owned |
Prior to Offering |
After Offering |
|
|
|
|
| Jeffrey P Bezos |
9,885,000 |
47.50% |
41.40% |
| c/o Amazon. Com, Inc. |
|
|
|
| 1516 Second Ave, 4th Floor |
|
|
|
| Seattle WA. 98101 |
|
|
|
|
|
|
|
| L. John Doerr |
3,401,376 |
16.4 |
14.3 |
| Kleiner Perkins Caufield & Byers |
|
|
|
| 4 Embarcadero Center, Suite 3520 |
|
|
|
| San Francisco, CA. 94111 |
|
|
|
|
|
|
|
| Tom A. Alberg |
195,000 |
* |
* |
| Scott D. Cook |
75,000 |
* |
* |
| Patricia Q. Stonesifer |
75,000 |
* |
* |
| All directors and executive officers as a group |
|
|
|
| (14 persons) |
15,688,925 |
72.5 |
63.5 |
| Total shares outstanding |
20,858,702 |
100 |
* |