Zoom Video raises $ 1.75 billion in new stock offering


Zoom Video Communications Inc Raises $ 1.75 Billion Through Equity Offering, Capitalizing on Enduring Demand for the Video Conferencing Platform During the Pandemic.

Zoom is selling around 5.15 million shares at $ 340 each, a reduction of 4.7% from its last close, according to a statement on Tuesday. The offer is expected to close on or around January 15th.

It gave its underwriter a 30-day option to purchase up to 735,294 additional shares of its Class A shares at the public offering price, excluding discounts and subscription fees, the statement said. JPMorgan Chase & Co. is the sole bookrunner for sale.

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The title was up 5.7% Tuesday in New York.

Zoom has gained over 380% in the past 12 months, reflecting the demand it has seen when people work, learn and socialize on their computers.

The stock has become a barometer of the pandemic economy, rising as Covid-19 lockdowns emerge and falling on good news about vaccines.

CEO Eric Yuan tried to diversify Zoom’s capabilities for large companies, small and medium enterprises and individuals so that the company can grow after the coronavirus control and more workers return to their offices.

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In Zoom’s latest earnings report, he suggests revenue growth in 2021 may be slightly less explosive than it was last year. Still, Zoom said it expects sales to increase by 330% in the current quarter, which ends in January.

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