zoom sets ipo range

Investment Analysis Clubs Saul’s Investing Discussions
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i’m sharing highlights here in my own words:
just read an article by dow jones newswire (6:07 am monday) setting ipo price range $28-32 with 20.9 million shares available. 10.9 million from company and 10 million from private share holders. also the article went on to mention that salesforce venture capital (CRM) was purchasing $100 million shares at $30 each, in a private sale.

Coatails

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257.9m shares outstanding on day 1, which means a range of $7.2 - $8.2b market cap. P/S is 22~25 which seems reasonable

Day 1 secondary price will likely be much higher though - if there’s a 20% increase upon IPO then you’re looking at 30 P/S which is comparable to MDB and ZS

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Source just to corroborate

https://www.morningstar.com/news/dow-jones/TDJNDN_2019040833…

I mentioned 2 weeks ago that anything under an 8 billion valuation would be a definite buy from me. Anything over and I’d have to think about it more.

At least in my eyes, they priced it perfectly, which is a darn shame!

Someone mentioned earlier that they don’t believe Zoom will get the same attention as uber and airbnb. Probably true, in which case we may not see a pop on IPO day, and hopefully have the opportunity to get in at a similar price. Then we can purely rely on future earnings performance to boost stock price.

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@#*&^ eTrade just confirmed they’re not participating in the IPO, so looks like I get to sit this one out or pray it doesn’t take off on day one and buy secondary. So disappointed… (to be fair, I think the pre-IPO company usually chooses which brokerages they want to underwrite the IPO, so maybe they don’t like eTrade for some reason, or got a better offer elsewhere)

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@#*&^ eTrade just confirmed they’re not participating in the IPO, so looks like I get to sit this one out or pray it doesn’t take off on day one and buy secondary. So disappointed… (to be fair, I think the pre-IPO company usually chooses which brokerages they want to underwrite the IPO, so maybe they don’t like eTrade for some reason, or got a better offer elsewhere)

Neither is TD Ameritrade nor Schwab. In fact, those two are not participating in ANY IPO’s at this time due to some legal issue with Goldman Sachs. I didn’t understand what little details they provided me over the phone.