Zoom Video Communications, which provides a cloud-based video and web conferencing platform, announced terms for its IPO on Monday.
The San Jose, CA-based company plans to raise $626 million by offering 20.9 million shares (48% secondary) at a price range of $28 to $32. Salesforce has agreed to invest $100 million in a concurrent private placement. At the midpoint of the proposed range, Zoom Video would command a fully diluted market value of $8.7 billion.
During the fiscal year ended January 31, 2019, revenue increased 118% to $331 million and adjusted EBITDA more than doubled to $22 million.
Zoom Video Communications was founded in 2011 and plans to list on the Nasdaq under the symbol ZM. Morgan Stanley, J.P. Morgan, Goldman Sachs, Credit Suisse, BofA Merrill Lynch, RBC Capital Markets and Wells Fargo Securities are the joint bookrunners on the deal. It is expected to price during the week of April 15, 2019.
