Question

In: Finance

A Brazilian company called Netshoes completed its IPO on April? 12, 2017 and listed on the...

A Brazilian company called Netshoes completed its IPO on April? 12,

2017

and listed on the NYSE. Netshoes sold

8,250,000

shares of stock to primary market investors at an IPO price of

?$18.00?,

with an underwriting discount of

6.5?%.

Secondary market? investors, however, were paying only

?$16.10

per share for?Netshoes'

31,025,936

shares of stock outstanding.

a. Calculate the total proceeds for? Netshoes' IPO.

b. Calculate the dollar amount of the underwriting fee for? Netshhoes' IPO.

c. Calculate the net proceeds for? Netshoes' IPO.

d. Calculate market capitalization for? Netshoes' outstanding stock.

e. Calculate IPO underpricing for? Netshoes' IPO.

f. Explain the IPO underpricing for Netshoes.

Solutions

Expert Solution

The following are the obtained results in spreadsheet:

The following are the data inputs in spreadsheet:

jeff jeffy answered 1 year ago
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