Zoom, the video conferencing giant agreed to raise the stakes by increasing the opening price for the first sale of Zoom shares, which means that the share price should start at the opening value of 36$ per share.
The company also announced issuing 20.9 million A class shares that should become available for trading on Nasdaq, April 18th, 2019, while the company’s shares should appear under the thicker ZM.
As Zoom is preparing to take off within its IPO debut, here is everything you need to know about Zoom IPO.
Zoom IPO 2019: Zoom One of the Rare Profitable Tech Companies Going Public
In oppose to multiple unicorn tech companies seeking to have their IPOs, Zoom is actually showing signs of profitability even before the company announced going public.
That is how Zoom reported 330.5 million dollars with gaining 3 cents per share for the year 2018, while the company reported loss by 11 cents per share in 2017 with a revenue of 151.5 million dollars, obviously showing an amazing progress within a year.
Zoom IPO Sees an Even Higher Valuation, Surpassing 9 Billion Dollars
Previously setting the share price between the value of 28$ and 32$, then increasing estimates to the price range between 32$ and 35$, Zoom announced an opening price set at 36$, which means that the company obtained a higher valuation.
Zoom is thus forming a market cap 28.2 times the company’s year to year revenue for the last fiscal year, which means that Zoom could raise up to 9.35 billion dollars with 20.9 million A class shares.
Zoom a Part of the Profitable Sector of Cloud Technologies
As Zoom is a video conferencing company based on cloud technology, the company makes a part of a valuable sector that appears to have become even more popular among investors in the recent years.
The company should capitalize on the cloud sector having developed a cloud-based multimedia router that makes video conferencing smoother by separating processing, transporting and mixing of video streams.
Additionally, Zoom claims that the video conferencing market based on cloud could reach 43.1 billion dollars in market cap by 2022.