Markets Insider
- Zoom Video Communications is going public on Thursday at a valuation of more than $9 billion.
- Zoom Technologies, which has a market cap of $13.5 million, was up nearly 100% on Thursday.
- This isn’t the first time investors have gotten confused about a company going public.
- Watch Zoom Technologies trade live.
Investors likely wanting to get in on Zoom Video Communications’ initial public offering sent shares of Zoom Technologies up by nearly 100% on Thursday morning.
The video-conferencing company Zoom Video Communications priced its initial public offering at $36 a share on Wednesday evening, and is set to go public at a valuation of more than $9 billion. Zoom Technologies on the other hand researches, develops, and sells electronic-communication products for mobile phones. It has a market cap of $13.5 million.
Notably, shares of Zoom Technologies rallied from near zero to a high of $5.76 after Zoom Video Communications in March filed its paperwork to go public.
Zoom Video Communications, which is a rare unicorn that makes money, will trade under the ticker ZM when hits the market on Thursday. Zoom Technologies trades under the ticker ZOOM.
This isn’t the first time that investors have gotten confused about which company is going public.
When Twitter filed to go public in October 2013, investors bid up shares of Tweeter Home Entertainment, which had the ticker TWTRQ. The stock gained as much as 1,500% that day before booking a gain of more than 684%.
And in March 2017, Snap Interactive soared 164% when Snapchat filed to go public.
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Source: Business Insider – jgarber@businessinsider.com (Jonathan Garber)