eBay 1998 Annual Report Download - page 18

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18
PART II
Item 5: Market for Registrant’s Common Equity and Related Stockholder Matters
Price Range of Common Stock
eBay’ s Common Stock has been traded on The Nasdaq Stock MarketSM under the symbol “EBAY” since
September 24, 1998. The following table sets forth the high and low sales prices of the Company’ s Common Stock
for the periods indicated and are as reported on The Nasdaq Stock MarketSM:
High Low
Year Ended December 31, 1998
Third Quarter (from September 24, 1998) .................................................................................. $ 18.08 $13.71
Fourth Quarter............................................................................................................................. 103.75 8.42
As of March 1, 1998, there were approximately 500 stockholders of record of the Company’ s Common Stock,
although the Company believes that there is a significantly larger number of beneficial owners of its Common
Stock.
Dividend Policy
The Company has never paid cash dividends on its stock, and anticipates that it will continue to retain its
earnings, if any, to finance the growth of its business.
Use of Proceeds of Initial Public Offering
The effective date of the Company’ s first registration statement, filed on Form S-1 under the Securities Act of
1933 (No. 333-59097) relating to the Company’ s initial public offering of its Common Stock, was September 23,
1998. A total of 12,042,825 shares of Company’ s Common Stock were sold at a price of $6.00 per share to an
underwriting syndicate led by Goldman, Sachs & Co., Donaldson, Lufkin & Jenrette Securities Corporation,
BancBoston Robertson Stephens Inc. and BT Alex. Brown Incorporated. The offering commenced on September 24,
1998 and closed on September 29, 1998. An additional 32,175 shares of Common stock were sold on behalf of a
selling stockholder as part of the same offering. The initial public offering resulted in gross proceeds of $72.5
million, $5.1 million of which was applied toward the underwriting discount. Expenses related to the offering totaled
approximately $1.2 million. Net proceeds to the Company and selling stockholder were $66.1 million and $180,000,
respectively. From the time of receipt through December 31, 1998, the proceeds were applied toward:
• Purchases and installation of machinery and equipment, $2,959,000;
• Repayment of indebtedness, $410,000; and
• Temporary investments in municipal bonds and notes, $28,114,000.
The remaining proceeds are being used as working capital or are included within cash, cash equivalents and
short-term investments.