Zoom does exactly that with IPO surging 80% on first day of public trading
Zoom does exactly that with IPO surging 80% on first day of public trading…
Expectations were high for Zoom Video Communications’ (ZOOM) first day of public trading, what with the fact that the company was that rarest of animals, a so-called “unicorn” that had actually managed to turn a profit over the last 12 months.
But the morning’s price action went way beyond expectations, as Zoom, a video-conferencing software company, saw its stock soar to $66 as soon as it started to trade during Thursday’s session.
That’s a significant premium above the company’s targeted share price of $36, and unlike Lyft, a highly anticipated IPO that surged before sinking underwater, investors have kept Zoom’s stock price near that $65 level.
The big bump from investors has provided the company with a market value of $16.7 billion. That’s a substantial premium above the valuation that the company had on Wednesday, when Zoom had upped its IPO pricing to the $28 to $32 range. At that $32 mark, the company would have had a value of $9.2 billion.
In addition to the shares being sold to the public, Zoom also had some of its early investors sell off 11 million shares, including Emergence Capital, Sequoia and Yuan.
The heat for tech-sector IPOs is starting to go supernova, with a number of highly anticipated offerings coming to market.
Pinterest also had its IPO on Thursday, and shares of the social media platform saw its own shares soar by 25% to start the trading day.
On tap for going public in the near future are Uber, Postmates and Slack.
Zoom is trading at $63 for a 75% gain on the day so far.