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LO3 15.5 IPO Pricing The Zipcar IPO was underpriced by about 56 percent. Should Zipcar be upset at Goldman over the underpricing? LO3 15.6 IPO Pricing In the previous question, how would it affect your thinking to know that the company was incorporated about 10 years earlier, had only $186 million in revenues in 2010, and had never earned a profit? Additionally, the viability of the company's business model was still unproven. LO3 15.7 IPO Pricing In the previous two questions, how would it affect your thinking to know that in addition to the 9.68 million shares offered in the IPO, Zipcar had an additional 30 million shares outstanding? Of those 30 million shares, 14.1 million shares were owned by four venture capital firms, and 15.5 million shares were owned by the 12 directors and executive officers.

LO3 15.5 IPO Pricing The Zipcar IPO was underpriced by about 56 percent. Should Zipcar be upset at Goldman over the underpricing? LO3 15.6 IPO Pricing In the previous question, how would it affect your thinking to know that the company was incorporated about 10 years earlier, had only $186 million in revenues in 2010, and had never earned a profit? Additionally, the viability of the company's business model was still unproven. LO3 15.7 IPO Pricing In the previous two questions, how would it affect your thinking to know that in addition to the 9.68 million shares offered in the IPO, Zipcar had an additional 30 million shares outstanding? Of those 30 million shares, 14.1 million shares were owned by four venture capital firms, and 15.5 million shares were owned by the 12 directors and executive officers.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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LO3 15.5 IPO Pricing The Zipcar IPO was underpriced by about 56 percent. Should Zipcar be upset at Goldman over the underpricing? LO3 15.6 IPO Pricing In the previous question, how would it affect your thinking to know that the company was incorporated about 10 years earlier, had only $186 million in revenues in 2010, and had never earned a profit? Additionally, the viability of the company's business model was still unproven. LO3 15.7 IPO Pricing In the previous two questions, how would it affect your thinking to know that in addition to the 9.68 million shares offered in the IPO, Zipcar had an additional 30 million shares outstanding? Of those 30 million shares, 14.1 million shares were owned by four venture capital firms, and 15.5 million shares were owned by the 12 directors and executive officers.
Transcribed Image Text:LO3 15.5 IPO Pricing The Zipcar IPO was underpriced by about 56 percent. Should Zipcar be upset at Goldman over the underpricing? LO3 15.6 IPO Pricing In the previous question, how would it affect your thinking to know that the company was incorporated about 10 years earlier, had only $186 million in revenues in 2010, and had never earned a profit? Additionally, the viability of the company's business model was still unproven. LO3 15.7 IPO Pricing In the previous two questions, how would it affect your thinking to know that in addition to the 9.68 million shares offered in the IPO, Zipcar had an additional 30 million shares outstanding? Of those 30 million shares, 14.1 million shares were owned by four venture capital firms, and 15.5 million shares were owned by the 12 directors and executive officers.
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