- Video conferencing company Zoom has raised its IPO price range, for a new potential valuation of $8.98 billion.
- The company plans to sell its shares for between $33 to $35, up from the $28 to $32 range it set last week.
- Zoom is expected to start trading Thursday on the Nasdaq under the ticker "ZM."
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Zoom raised its IPO price range on Tuesday signaling that demand is high for shares of the video conferencing company, which is expected to start trading Thursday on Nasdaq under the ticker symbol "ZM."
At the high end of its new $33 to $35 range, Zoom could be valued at $8.98 billion. This is up considerably from the price range it set last week of $28 to $32 per share, which would have given Zoom a maximum valuation around $8.25 billion.
Regardless of where it prices, Zoom is set to go public at a major premium to its last private valuation of just $1 billion.
This pricing confidence comes after the markets saw two conflicting examples of how Wall Street values high-growth tech companies.
The $21 billion ride-hailing company Lyft went public on March 29 far above its price range, but has since sunk to new lows. Yet PagerDuty, a $1.76 billion enterprise software company, remains far above its IPO price range nearly a week after its listing on April 11.
Pinterest, another member of the unicorn IPO cohort, also priced its IPO last wek at a valuation below its last private funding round. The company priced its IPO at $15 and $17 a share, giving it a valuation of $11.3 billion at the upper end of the range. It was most recently valued at $12.3 billion by private investors in 2017.
However, Zoom stands out from the pack for one main reason. Unlike Lyft, PagerDuty or Pinterest, Zoom is actually profitable.