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The video chat company, which has been a major beneficiary of the remote working boom during the Covid-19 pandemic, assumes a share price of $ 337.71, based on Monday’s close . Zoom went public less than two years ago, selling shares at $ 36 apiece. He plans to sell around 4.4 million new shares.
Zoom is benefiting from renewed investor interest after the stock quintupled in value last year, when the company’s flagship became a household name. Zoom is already profitable, but the sale of shares will complete its balance sheet. In October, the company had $ 730.5 million in cash and cash equivalents, up from $ 283.1 million in January.
The secondary sale will provide the necessary capital to combine liquidity and potentially make trades more attractive to targets. Zoom said he plans to use the money for operating and capital expenses, and “may also use a portion of the net proceeds for strategic acquisitions or investments in companies, products, services or complementary technologies ”.
While Zoom’s valuation has increased tenfold since its IPO, the company is significantly below its peak. Since peaking at $ 568.34 in mid-October, Zoom shares have fallen more than 41%, taking their biggest hit on reports that Covid-19 vaccines were highly effective and would be rushed to market .
Zoom’s revenue growth has exceeded 350% in each of the past two quarters, and the company said in its last earnings report in November that fourth-quarter tax growth would approach 330%. By the middle of the year, growth is expected to slow significantly as the business faces much more difficult comparisons and the likelihood of people returning to the office.
Zoom’s shares rose 1.6% to $ 343.14 by mid-afternoon on Tuesday.
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