Zoom Boosts Upcoming IPO Price Range

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Zoom, a provider of video conferencing software, revised its price expectations substantially higher Friday for its pending initial public offering.

According to a revised SEC S-1 filing, the startup is expecting a price range of $33 to $35 a share, up from its earlier expected $28 to $32. At this new price point, the startup could garner as much as $8.9 billion. The company will release 20,869,565 shares for public sale.

It already has a customer in Salesforce, which in the filing was noted to purchase 100 million of Zoom’s Class A common stock at an agreed upon price not disclosed.

Fueling the uptick in Zoom’s IPO pricing expectations is the growth the company has been seeing leading up to its public offering. For the fiscal year ending January 31 this year, Zoom reported more than $330 million in revenue, with a net income of $7.6 million. The previous year’s revenue was $151 million, and a net loss of $3.9 million. It blew past unicorn status in early 2017, and is already considered by many analysts to be a successful IPO due to its profitability which other IPOs have yet to show, like Lyft and the forthcoming Uber, for example.

Since its launch in 2011, Zoom has built a solid business around audio/video facilities that produce and distribute webinars, conferencing, content sharing and discussion platforms for businesses and institutions. It’s customer base includes Indiana University, Conde Nast Publishing, Pandora Media, Dell, Gap, and Capital One.

Financial institutions underwriting Zoom’s IPO include Bank of America/Merrill Lynch, Morgan Stanley, Goldman Sachs, Piper Jafray and RBC Capital Markets.

Zoom will start trading this Thursday under the NASDAQ exchange under the “ZM” ticker symbol.

 

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