Zoom founder Eric Yuan speaks before the Nasdaq opening bell ceremony on April 18, 2019 in New York City.
Got Betancur | Getty Images
Zoom said Tuesday that they plan to raise $ 1.5 billion in a secondary stock sale and value its stock 10 times over where it debuted in 2019.
The video chat company, which has been a major recipient of the remote boom during the Covid-1
Zoom benefits from an increase in investor interest after the share’s fivefold increase in value last year, when the company’s flagship product became a household name. Zoom is already profitable, but the stock sale puts balance in its balance sheet. In October, the company had $ 730.5 million in cash and equivalents, compared to $ 283.1 million in January.
Zoom’s stock rally in 2020
With a market coverage of close to DKK 100 billion. Dollar has Zoom equity to make significant acquisitions.
Secondary sales provide capital to combine cash and potentially make trades more attractive to targets. Zoom said they plan to use the money for operating expenses and capital expenditures, and “may also use part of the net proceeds for acquisitions or strategic investments in ancillary companies, products, services or technologies.”
While Zoom’s rating has been multiplied 10 times since the IPO, the company is significantly lower than its high. Since a peak of $ 568.34 in mid-October, Zoom shares have fallen more than 41%, taking their biggest hit on reports that Covid-19 vaccines were very effective and would be rushed to market .
Zoom’s revenue growth has peaked at 350% in each of the last two quarters, and the company said in its latest earnings report in November that fiscal growth in the fourth quarter will approach 330%. By the middle of the year, growth is expected to be dramatically dramatic as the company has to deal with much tougher comparisons and the likelihood of people returning to the office.
Zoom shares rose 1.6% to $ 343.14 from mid-afternoon Tuesday.
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