Zoom seeks to raise $1.5 billion through new stock offering
The stock has become a barometer of the pandemic economy, rising when Covid-19 lockdowns emerge and falling on good news about vaccines.
Zoom Video Communications Inc. is seeking to raise $1.5 billion through a stock offering, capitalizing on surging demand for the video-conferencing platform during pandemic.
Zoom said in a statement Tuesday it expects to give its underwriter a 30-day option to buy as much as an additional $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 Jan. 13, people familiar with the matter said, asking not to be identified because they aren't authorized to speak publicly. The stock was up 1.6% to $342.99 as the market opened in New York Tuesday.
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Zoom has gained 362% in the past 12 months, reflecting the demand it has seen as people work, learn and socialize on their computers.
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.
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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% in the current quarter, which ends in January.
By Molly Schuetz and Drew Singer
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