Zoom stock slumps 6% after the video-conferencing group announces a $1.5 billion stock offering

SourceBusiness Insider
SectorFinancial Markets
CountryMiddle east

Zoom's stock price dropped as much as 6% in premarket trading on Tuesday, after it announced a $1.5 billion share offering.The video-conferencing group hasn't set a date yet, saying the stock sale remains "subject to market and other conditions."Zoom's $1.5 billion target suggests it will issue about 4.3 million shares, or around 1.5% of its outstanding shares.The software group likely wants to make the most of its 400% stock rally in 2020 and add some cash its coffers.Visit Business Insider's homepage for more stories. Zoom shares slid as much as 6% in premarket trading on Tuesday after the video-conferencing group announced it will sell $1.5 billion of its stock in an underwritten public offering. The software company didn't provide a date for the offering, saying it was "subject to market and other conditions." Zoom has appointed JPMorgan as the sole underwriter. It plans to grant the investment bank a 30-day option to purchase an additional $225 million of its shares at the offering price, before underwriting discounts and commissions. Read more: Goldman Sachs says to buy these 29 stocks poised to deliver the strongest sales growth through year-end The $1.5 billion target suggests Zoom could issue about 4.3 million shares, ...read more...