What were the total proceeds from the offering


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 *

Solution Preview :

Prepared by a verified Expert
Finance Basics: What were the total proceeds from the offering
Reference No:- TGS02054597

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)