(The Southern African Times) – Zoom Video Communications Inc is raising $1.75 billion through a stock offering, capitalizing on enduring demand for the video-conferencing platform during the pandemic.
Zoom is selling about 5.15 million shares at $340 apiece, representing a 4.7% discount to its last close, according to a statement on Tuesday. The offering is expected to close on or about Jan. 15.
It has given its underwriter a 30-day option to buy as much as an additional 735,294 shares of its Class A stock at the public offering price, excluding underwriting discounts and fees, the statement shows. JPMorgan Chase & Co. is the sole bookrunner for the sale.
The stock was up 5.7% on Tuesday in New York.
Zoom has gained more than 380% in the past 12 months, reflecting the demand it has seen as people work, learn and socialize 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% in the current quarter, which ends in January.