MuleSoft, Inc. conducted its IP on March 17, 2017 for theprinciple purposes of increasing its capitalization and financialflexibility, creating a public market for its Class A common stock,and enabling access to the public equity markets for it and itsstockholders. MuleSoft sold 13 million shares for an IPO offer of$17 per share. The underwriting discoung was $1.19 per share.MuleSoft intends to use the net proceeds from the offering to thefirm for general corporate purposes, such as working capital,operating expenses, capital expenditures, and to possibly acquirecomplementary businesses, products, services or technologies.MuleSoft's closing stock price was $24.75 after the first day oftrading on the NYSE and there were 125,991,557 shares of stockoutstanding.
Create a spreadsheet to conduct an analysis of MuleSoft's IPOand determine the following:
a) Calculate the total proceeds for MuleSoft's IPO.
b) Calculate the percentage underwriter discount for MuleSoft'sIPO.
c) Calculate the dollar amount of the underwriting fee forMuleSoft's IPO.
d) calculate the net proceeds for MuleSoft's IPO.
e) Calculate the percentage IPO underpricing for MuleSoft'sIPO.
f) Calculate the market capitalization for MuleSoft's IPO afterthe first day of trading in the secondary market.
MuleSoft, Inc. conducted its IP on March 17, 2017 for theprinciple purposes of increasing its capitalization and financialflexibility, creating a public market for its Class A common stock,and enabling access to the public equity markets for it and itsstockholders. MuleSoft sold 13 million shares for an IPO offer of$17 per share. The underwriting discoung was $1.19 per share.MuleSoft intends to use the net proceeds from the offering to thefirm for general corporate purposes, such as working capital,operating expenses, capital expenditures, and to possibly acquirecomplementary businesses, products, services or technologies.MuleSoft's closing stock price was $24.75 after the first day oftrading on the NYSE and there were 125,991,557 shares of stockoutstanding.
Create a spreadsheet to conduct an analysis of MuleSoft's IPOand determine the following:
a) Calculate the total proceeds for MuleSoft's IPO.
b) Calculate the percentage underwriter discount for MuleSoft'sIPO.
c) Calculate the dollar amount of the underwriting fee forMuleSoft's IPO.
d) calculate the net proceeds for MuleSoft's IPO.
e) Calculate the percentage IPO underpricing for MuleSoft'sIPO.
f) Calculate the market capitalization for MuleSoft's IPO afterthe first day of trading in the secondary market.
