Zoom’s rival Pexip releases terms for its £165.21 million IPO in Oslo
- Pexip releases terms for its £165.21 million initial public offering in Oslo.
- The video conferencing company will sell 17 million new shares priced at £4.87.
- Roadshows for Pexip's IPO are scheduled from 5th May to 12th May.
As Coronavirus wreaks havoc on global businesses, video conferencing has been greatly in demand in the past few months. In recent news, Zoom’s rival, Pexip Holdings SA released the terms of its IPO (Initial Public Offering) on Monday. The company is scheduled to go public in Oslo.
As per the announcement, the enterprise video conferencing solutions company is pricing its stock at £4.87 and plans on selling 17 million new shares.
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With existing shareholders of the Norwegian company outlining another 17 million shares on sale, Pexip’s IPO is expected to be worth £165.21 million.
Roadshows are scheduled from 5th May to 12th May
According to the company, roadshows for its IPO are scheduled from 5th May to 12th May. Pexip, however, may resort to extending it further to May 19th if it sees the need. The Norwegian company also highlighted that Carnegie and Pareto Securities and ABG Sundal Collier will be serving the role of joint global coordinators for its IPO.
As businesses resort to work from home arrangements to minimize the fast spread of the flu-like virus that has so far affected more than 3.5 million people worldwide and has caused roughly 250,000 deaths, Pexip saw significant growth in the past few weeks.
Pexip released its quarterly performance results earlier this year in April. The financial report highlighted a more than 50% increase in its contracted revenue in the first quarter as compared to the same quarter last year. Pexip also commented on its earnings last month and stated:
“The results are being further spurred by the current COVID-19 situation as more and more companies turn to video communication to enable business continuity.”
Pexip benefits from Zoom’s security issues
Pexip’s upbeat performance in terms of expanding userbase is also attributed to Zoom’s recently highlighted security and privacy concerns. While COVID-19 also fuelled growth for Zoom in 2020, Pexip benefitted greatly from the security issues that dogged its biggest rival.
The Norwegian company focuses intensely on security to mimic the experience of business meetings behind closed doors for enterprises. This has enabled Pexip to secure a few high profile clients including PayPal, Amnesty International, and the U.S government.
The overall IPO climate has been uncertain for companies due to the Coronavirus pandemic. As per experts, however, Pexip may have the recipe for a successful offering amidst the health crisis. As per the sources, the company already boasts four investors making up a total of £91.29 million.