Shares surged nearly 80% to $64.75.
That opening price put the company's valuation at about $16.6 billion, well above earlier projections of $9 billion. In a sign of the strong demand for the offering, Zoom raised its pricing range earlier this week to $33 to $35 per share, before pricing at $36 on Wednesday after the close.
The San Jose-based company provides videoconferencing tools. Shares were recently changing hands at $63 a share.
Zoom Video is one of two multi-billion dollar tech IPOs to debut on Thursday. Pinterest (PINS) - Get Pinterest, Inc. Class A Reportdebuted on the New York Stock Exchange, opening at $23.75, 25% above its initial public offering price of $19 a share. Both companies priced their offerings fairly conservatively at the start in the wake of the big decline experienced by ridesharing giant Lyft (LYFT) - Get Lyft Inc Class A Report following its IPO.
The company posted revenue of $60.8 million, $151.5 million and $330.5 million for the fiscal years ended Jan. 31, 2017, 2018 and 2019, respectively, according to its filing with the SEC. That represented annual revenue growth of 149% and 118% in fiscal 2018 and fiscal 2019, respectively.
Zoom Video said in its filing that "much of the primary capital that we have raised in recent years remains on our balance sheet, demonstrating the cash flow efficiency of our business."
Salesforce Ventures LLC, the venture capital arm of Salesforce.com CRM , agreed to buy $100 million of stock in a private placement at a price per share equal to the IPO, the filing said. The deal is contingent upon, and is scheduled to close immediately subsequent to, the closing of the offering, the filing said.