Shares of Zoom Technologies went up 47,000% after IPO startup Zoom. Many investors bought them by mistake / ITI Capital Blog

ITI_Capital April 19, 2019 at 14:57

Shares of Zoom Technologies went up 47,000% after IPO startup Zoom. Many investors bought them by mistake.

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This week, IPO was held by Zoom, a developer of a service for video conferencing . The listing was successful - on the first day of trading, the value of shares soared by 76%, but it was not without embarrassment.

It turned out that the shares of another company with a similar name, Zoom Technologies, are also trading on the stock exchange. Telecommunications equipment is being manufactured. Many investors mistakenly began to buy the shares of the wrong company, as a result of which the papers of the “wrong” Zoom increased in price by 47,000%.

What happened

Shares of Zoom Technologies are traded under the ticker symbol Zoom, and the shares of the IPO Zoom Video Communications are designated ZM. As a result, many investors mixed up the companies and mistakenly bought shares of the telecom company, instead of a startup.

In March, Zoom Technologies shares were worth $ 0.005, immediately before the IPO Zoom Video Communications they went up to more than $ 5, then the price dropped to $ 2.7 per share. The total increase in the value of shares amounted to 47,000%.

Learn more about Zoom Technologies

Zoom Technologies is a China-based company that develops communications equipment. Its market value is only $ 14 million, the company employs only 10 people. During an IPO in 2019, its shares were sold at a price of 1 cent apiece.

According to the data indicated on the company’s card on Yahoo !, it “does not carry out significant operations”

Zoom videoconference service held an IPO on April 18. The startup’s listing on the stock exchange became a hot topic of the day - the company's stock price at the close of trading on the first day amounted to $ 62, which is more than 72% higher than the starting price during the IPO.