Zoom Will Make Secondary Offering To Attract 1.5 Billion USD

If you thought that the news about the super-popular online platform for video-conferences Zoom was left in 2020, think again. This US tech company has much in stock. It’s high time to learn some details.
What’s it about?

On January 12th, Zoom Video Communications on its official website published a press-release promising a secondary offering of stocks until January 15th. The company is planning to sell 5.15 million class A stocks per 340 USD each. Experts say that the amount of net money attracted by the offering might reach 1.5 billion USD.

The IT company will provide the JPMorgan Chase bank, which is its only book-runner, a 30-days option for buying 735 thousand stocks for 225 million USD.

Note that on January 12th, Zoom’s stocks traded in NASDAQ for 356.81 USD each, which was 4.7% more than the announced placement price. To the news, the market reacted positively: at the moment I was preparing this article, the stocks cost 383.24 USD, which means the quotations grew by 7.4% after the press-release.
Curious facts about Zoom

    On April 17th, 2019, the company carried out an IPO, starting trades at 36 USD per stock.
    By the IPO, Zoom attracted 447.9 million USD.
    The stock price of the planned SPO will be almost ten times bigger than that at the IPO – 340 USD against 36 USD.
    Since a year ago, the quotations of Zoom Video Communication have grown by 382%.
    In the third quarter of 2020, the revenue amounted to 777.2 million USD, demonstrating a growth of 367%.
    The net profit of the same period reached 198 million USD, which is 94 times more than in the same quarter of 2019.
    According to the reports of Q3, the datab*ase of clients whose annual income is higher than 100 thousand USD has grown by 136%.
    The forecast for the current quarter promise that the revenue for November-January night reaches 806-811 million USD.

Summing up

Zoom Video Communications plans to sell over 5 million stocks and attract 1.5 billion USD. Since the company came to NASDAQ, this is the largest offering. The only book-runner will be the JPMorgan Chase bank.

With the pandemics of COVID-19 and the development of remote work and study, the platform for online video conferences has become extremely popular worldwide. In 2020, its stock price grew by almost 400%, from 68 to 337.3 USD.

According to various sources, the services provided by the company are used by 75-100 million users but only 20% of them are paid clients. Hence, the main task of this telecommunication company is to increase monetization. 2021 will show if Zoom will manage to increase the number of paid users and have its financial results growing at the same speed.


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