Proactive Investors - Run By Investors For Investors

IPO Roundup: Pinterest begins trading at $23.75, Zoom Video debuts at nearly double its IPO price

The pair of technology unicorns began trading Thursday, entering an IPO market that has been hot and hospitable for most companies
Pinterest app
San Francisco-based Pinterest operates a pinboard-style social photo sharing platform

Pinterest Inc (NYSE:PINS), a digital pin board company, started trading on the public markets Thursday at $23.75, after immediately rallying from its IPO price of $19

The company priced its shares above range last night at $19 a piece. The IPO price gave the company a market cap of $12.6 billion, a figure slightly larger than its Series H valuation of $12.3 billion. The compnay was earlier expecting to price between the $15 to $17 band, and hoping to raise approximately $1.2 billion by offering 75 million shares.

IPO Roundup: Pinterest leads an IPO bonanza this week

Launched in 2010, San Francisco-based Pinterest operates a pinboard-style social photo sharing platform. It booked $756 million in sales over the last 12 months.

Zoom Video Communications

In what is shaping up as the busiest week of the 2019 IPO calendar, Zoom Video Communications Inc (NASDAQ:ZM), which provides a cloud-based video and web conferencing platform, also made its public debut. The San Jose-based company opened at $64.70, nearly double its IPO price of $36.

The pop gives Zoom Video a fully diluted market cap of roughly $16 billion, or 16 times larger than the $1 billion valuation it garnered with its last round of private funding in 2017.

Despite being less than half the size of Pinterest, Zoom is being given a higher valuation because it’s growing faster and is profitable.

Zoom sells its videoconferencing software to businesses, including 344 compnaies that spend over $100,000 a year. Unlike other tech unicorns that typically hit the market when they’re still burning cash, Zoom earned $7.58 million in net income last year. Revenue surged 118% to $330.5.

Again, Zoom priced much higher than the $28 to $32 band that it was earlier eying in a bid to raise $626 million by offering 20.9 million shares.

Salesforce has agreed to invest $100 million in a co-existing private placement. The San Jose, California-based company was founded in 2011, and booked $331 million in sales over the last 12 months.

Morgan Stanley, JP Morgan, Goldman SachsCredit Suisse, BofA Merrill Lynch, RBC Capital Markets and Wells Fargo Securities are the joint bookrunners on the deal.

– (Updates with prices, valuation, company details) –

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive

Andrew Kessel contributed to this story

Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use