Zoom, the provider of video conferencing software and one of the most promising IPOs for 2019, alongside representing the most richly valued cloud company waiting to go public, announced that the company is raising the opening share price for Zoom IPO.
By raising the expected share price, Zoom is also acquiring a higher estimate for the upcoming IPO, getting close to 9 billion dollars in estimates as Zoom shares should open the first IPO sale at the price per share 27 times the company’s value.
Investors and High Hopes for Cloud Company IPOs
The fact that Zoom is planning on opening their IPO sale at a higher share price indicates that the company is tapping into the market where investors are showing enthusiastic interest in cloud software and the development of cloud companies.
Even before the company announced raising their expected share price for the upcoming Zoom IPO, Zoom was considered to be one of the top valued cloud companies by far when it comes to market of IPOs, gaining more momentum after the initial announcement.
Zoom IPO previously expected to open the initial sale at the price range between 28$ and 32$ per share, however, the company announced a rise in their estimate, now expecting to see an opening price between 32$ and 35$.
This case places Zoom IPO estimates at 8.9 billion dollars, making it one of the highest IPO estimates for a cloud company and among Zoom’s competitors.
Zoom IPO 2019: Zoom Revenues Surging Ahead of IPO
Besides from raising the expected price range for Zoom shares, the company also reported increases in revenue for 2018 ahead of their IPO, stating that the company managed to score 118% year to year period, topping 330.5 million dollars.
Zoom thus represents an exception in the sector of emerging tech companies, given the fact that the company is showing signs of profitability even in the developing stages of their business.