Zoom seeks to raise US$1.5 billion through new stock offering amid booming demand for video conferencing
- Zoom has gained 362 per cent in the past 12 months, reflecting the demand it has seen as people work, learn and socialise on their computers
Zoom Video Communications is seeking to raise US$1.5 billion through a stock offering, capitalising on surging demand for the video-conferencing platform during the pandemic.
Zoom said in a statement on Tuesday that it expects to give its underwriter a 30-day option to buy as much as an additional US$225 million of Class A stock at the public offering price, excluding underwriting discounts and fees. JPMorgan Chase & Co. is the sole book runner for the sale.
The new shares will start trading January 13, people familiar with the matter said, asking not to be identified because they are not authorised to speak publicly. The stock was up 1.6 per cent to US$342.99 as the market opened in New York Tuesday.
Zoom has gained 362 per cent in the past 12 months, reflecting the demand it has seen as people work, learn and socialise on their computers. The stock has become a barometer of the pandemic economy, rising when Covid-19 lockdowns emerge and falling on good news about vaccines.
Chief Executive Officer Eric Yuan has tried to diversify Zoom’s capabilities for large enterprises, small- and mid-sized businesses and individuals so the company can grow after the coronavirus is controlled and more workers return to their offices.
In Zoom’s latest earnings report, it suggested that revenue growth in 2021 may be slightly less explosive than it was last year. Still, Zoom said it expects an increase in sales of 330 per cent in the current quarter, which ends in January.