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Zoom, the profitable tech unicorn, prices IPO above range

Zoom, a relatively under-the-radar tech unicorn, has defied expectations with its initial public benefaction. The video conferencing business priced its IPO above its planned range on Wednesday, confirming plans to trade shares of its Nasdaq stock, titled “ZM,” at $36 apiece, CNBC reports.

The company initially planned to price its shares at between $28 and $32 per share, but following huge require for a piece of a profitable tech business, Zoom increased expectations, announcing plans to trade shares at between $33 and $35 apiece.

The benefaction gives Zoom an initial marketplace cap of roughly $9 billion, or nine times that of its most recent independent marketplace valuation.

Zoom plans to trade 9,911,434 shares of Class a common stock in the listing, to bring in about $350 million in brand-new capital.

If you haven’t had the chance to descend into Zoom’s IPO prospectus, here’s a quick run-down of its financials:

  • Zoom raised a total of $145 million from adventure capitalists before filing to go public
  • It posted $330 million in revenue in the year ending January 31, 2019 with a gross profit of $269.5 million
  • It more than doubled revenues from 2017 to 2018, ending 2017 with $60.8 million in revenue and 2018 with $151.5 million
  • Its losses have shrunk from $14 million in 2017, $8.2 million in 2018 and just $7.5 million in the year ending January 2019

Zoom is backed by Emergence Capital, which owns a 12.2 percent pre-IPO stake; Sequoia Capital (11.1 percent); Digital Mobile adventure, a fund affiliated with former Zoom board member Samuel Chen (8.5 percent); and Bucantini Enterprises Limited (5.9 percent), a fund owned by Chinese billionaire Li Ka-shing.

Zoom will debut on the Nasdaq the same day Pinterest will go public on the NYSE. Pinterest, for its part, has priced its shares above its planned range, per The Wall road Journal.

Source
TechCrunch
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