Initial public offering On April 13, 2017, Yext Inc. completed its IPO on the NYSE. Yext...

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Initial public offering On April 13, 2017, Yext Inc. completed its IPO on the NYSE. Yext sold 10,500,000 shares of stock at a

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Answer 1

Answer #1

share issued through IPO = $10,500,000

Outstanding shares IPO = $85,489,470

Offer price = $11

Underwriting discount = $0.79 per share

Closing stock price at end of first trading day = $13.44

a ) Total proceeds for yext's IPO = No; shares offerd IPO * Offer price per share

= $10,500,000 * $11 = $11,55,00,000

b ) Percentage underwriter discount = ( Underwrite discount per share / offer price per share ) * 100

= ( $0.79 / $11 ) * 100

= 7.1818%

c ) Dollar amount of the underwriting fee for Yext's IPO

= No; shares sold in the IPO * underwriting discount per share

= $10,500,000 * $0.79

= $82,95,000

d ) Net proceeds for yext's IPO = Total proceeds from IPO - underwriting fee for the IPO

= $11,55,00,000 - $82,95,000

= $10,72,05,000

e ) underpricing of yext's

underprice per share = Market price at the end of first trading day - offer price

= $13.44 - $11 = $ 2.44

underpricing of yext's IPO = underprice per share * No; shares sold in IPO

= $2.44 * $10,500,000

= $2,56,20,000

f ) Market capitalization = Outstanding shares * market price per share end of the trading day

= $85,489,470 * $13.44

= $1,14,89,78,476.8

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Answer 2

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