Zoom Video Conferencing from press office

Shares in video conferencing service Zoom opened at $65 on their first day of trading on Friday, an 81 per cent jump from the level the shares were priced at the night before.

The euphoric Wall Street reception echoed the 64 per cent first-day jump in shares of PagerDuty, a much smaller business tech company that went public last week. Zoom’s rapid growth in a market dominated by giants like Cisco, Microsoft and Google has made it one of the most closely watched IPOs so far this year, and its IPO highlights the current investor enthusiasm for workplace apps that show signs of catching on with a large audience.

At its opening share price, Zoom is worth $19bn based on a fully-diluted share count. That tops the current $15bn market cap of Snap, the messaging service whose IPO two years ago was seen as a highlight for the consumer internet.

Silicon Valley-based Zoom had originally set an indicated price range on its shares at $28-30, before raising the range and eventually pricing the offering at $35. The deal leaves Eric Yuan, the company’s co-founder and chief executive officer, with a stake worth $3bn. That is nearly as much as the $3.2bn Cisco paid 12 years ago to buy Webex, one of the biggest business video conferencing companies, where Mr Yuan was also one of the original engineers.

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