Startups
Zoom, the profitable tech unicorn, prices IPO above range
Zoom, a relatively under-the-radar tech unicorn, has defied expectations with its initial public offering. The video conferencing business priced its IPO above its planned range on Wednesday, confirming plans to sell 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 big demand for a piece of a profitable tech business, Zoom increased expectations, announcing plans to sell shares at between $33 and $35 apiece.
The offering gives Zoom an initial market cap of roughly $9 billion, or nine times that of its most recent private market valuation.
Zoom plans to sell 9,911,434 shares of Class A common stock in the listing, to bring in about $350 million in new capital.
If you haven’t had the chance to dive into Zoom’s IPO prospectus, here’s a quick run-down of its financials:
- Zoom raised a total of $145 million from venture 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 Venture, 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 Street Journal.
-
Entertainment7 days ago
Earth’s mini moon could be a chunk of the big moon, scientists say
-
Entertainment7 days ago
The space station is leaking. Why it hasn’t imperiled the mission.
-
Entertainment6 days ago
‘Dune: Prophecy’ review: The Bene Gesserit shine in this sci-fi showstopper
-
Entertainment5 days ago
Black Friday 2024: The greatest early deals in Australia – live now
-
Entertainment4 days ago
How to watch ‘Smile 2’ at home: When is it streaming?
-
Entertainment3 days ago
‘Wicked’ review: Ariana Grande and Cynthia Erivo aspire to movie musical magic
-
Entertainment2 days ago
A24 is selling chocolate now. But what would their films actually taste like?
-
Entertainment3 days ago
New teen video-viewing guidelines: What you should know