Zoom Video Communications has priced an offering of over 5 million shares at USD 340 per unit. The offering is expected to generate USD 1.75 billion, before deductions, commissions and expenses. The shares was priced just above the company's last closing price before the offering was announced, of USD 337.71. The stock finished the day up 5.7 percent at USD 356.81.
The company said earlier that all of the shares proposed will be sold by Zoom itself. The company also granted a greenshoe of 735,294 extra shares. JP Morgan is acting as sole book-running manager for the offering.
Proceeds from the sale are expected to support the videoconferencing company's rapid growth and boost its free float. Zoom said it would use the money for working capital, operating expenses and capital expenditures, as well as possible acquisitions.
