Video-conferencing software company Zoom priced its highly-anticipated public offering at $36 per share after the bell on Wednesday, giving the company an estimated valuation of about $9.2 billion .
The offering raised $751 million, and valued the company at over $9 billion, Bloomberg said, and is the fourth largest offering this year.
Now that shares have officially priced, Zoom is expected to list on the Nasdaq under the ticker “ZM” on Thursday morning. Like many of its IPO peers, Zoom will have dual-class shares. The San Jose–based company will offer just under 10 million Class A shares to investors Thursday.
Demand for Zoom has boomed recently. The company raised the offering range on Tuesday to between $33 to $35 per share, up from the originally anticipated range of $28 to $32 per share. At the high end of the range, Zoom would have a valuation of nearly $9 billion.
Zoom’s IPO is going head-to-head with another Silicon Valley tech darling, Pinterest. The online pinboard and scrapbooking company will also be debuting on the public market Thursday morning. Pinterest is set to list on the New York Stock Exchange under the ticker “PINS.”
As a flood of IPOs look to hit the market this year, Wall Street remains skeptical as filings have revealed that many of Silicon Valley’s tech unicorns have yet to turn a profit. However, that’s not the case with Zoom. It is one of the few tech unicorns that have recently become profitable.
In fiscal 2017, the company reported revenue of nearly $60 million, about $150 million in fiscal 2018 and $330 million for fiscal 2019. Zoom posted net income of $7.4 million for fiscal 2019. The company is growing quickly, and the company’s profitability has spurred a surge in demand for a piece of the IPO pie.
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung .
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