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Zoom Video Communications tops IPO range to raise US$751m

[SAN FRANCISCO] Zoom Video Communications Inc, a profitable video-conferencing services provider, raised US$751 million in an initial public offering, pricing shares above the top of an already increased range.

The San Jose, California-based company sold 20.87 million shares for US$36 apiece, according to data compiled by Bloomberg. It had initially marketed them for US$28 to US$32 each before bumping the range to US$33 to US$35 per share. The IPO gives Zoom a market value of about US$9.2 million, based on the number of shares outstanding after the offering. That's more than nine times its last private valuation of about US$1 billion, after a 2017 funding round.

Zoom is one of the few tech unicorns set to go public this year that has made a profit. It reported net income of US$7.6 million for the year ended January on revenue of US$331 million, compared with a loss of US$3.8 million a year earlier on revenue of US$151 million.

The offering was led by Morgan Stanley, JPMorgan Chase & Co, Goldman Sachs Group Inc and Credit Suisse Group AG. Zoom is set to trade on the Nasdaq Global Select Market under the ticker ZM.

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