Financial Markets and Institutions (2-downloads)

Percentage of 

Shares Outstanding

Name and Address

Number of Shares

Beneficially Owned

Prior to 

Offering

After

Offering

Jeffrey P. Bezos

9,885,000

7.5%

41.4%

c/o Amazon.com, Inc.

1516 Second Avenue, 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

100.0

—.–

Q U A N T I TAT I V E   P R O B L E M S

Amazon.com issued an initial public offering in May 1997.

Prior to its IPO, the following information on shares out-

standing was listed in the final prospectus:

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.

1. What were the total proceeds from this offering?

What part was retained by Amazon? What part by

the investment bankers? What percent of the offer-

ing is this?

2. 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?