ZoomInfo Shares Close 62% Higher After $935 Million U.S. Debut
(Bloomberg) -- ZoomInfo Technologies Inc., the business-intelligence platform, scored the biggest initial gain in a U.S. trading debut in the past decade for a company of its size or larger, according to data compiled by Bloomberg.
Vancouver, Washington-based ZoomInfo, after raising $935 million in an initial public offering priced above a targeted range, doubled its IPO price at the opening bell on Thursday. Its shares closed up 62% to $34, giving the company a value of $13 billion.
ZoomInfo’s debut marks the return of technology IPOs as well as their iconic first-day pop. It’s gain at the closing is the fifth-best trading debut in the U.S. this year, after Inari Medical Inc. and other health-care companies, the data show.
It’s the first technology listing in the U.S. since Chinese cloud service provider Kingsoft Cloud Holdings Ltd.’s IPO in April. Several companies that were planning to go public this year, such as Airbnb Inc. and Procore Technologies Inc., have turned to private funding instead in the face of economic uncertainties.
The listing is also part of a global IPO surge that could raise a total of more than $6 billion this week, the data shows. Warner Music Group Inc. shares jumped as much as 23% in its trading debut Wednesday after a $1.93 billion offering, the largest IPO in the U.S. this year.
ZoomInfo’s debut performance might have benefited from confusion related to Zoom Video Communications Inc., whose 224% stock rally this year has been partly fulled by the popularity of its video conferencing service. Shares of a third and also unrelated company, Zoom Technologies Inc., rose with Zoom Video’s IPO last year and again in March when Zoom Video’s shares jumped as use of its conferencing soared during the coronavirus pandemic.
ZoomInfo, which conducted its roadshow with prospective investors virtually, sold 44.5 million shares for $21 each. It had marketed them for $19 to $20 each, a range that had been increased from $16 to $18.
“Companies are looking for ways to digitalized their sale effort,” ZoomInfo Chief Executive Officer Henry Schuck said in a Bloomberg TV interview. “We spent the last year meeting with investors all over the country, getting them comfortable with our business.”
Electric truck maker Nikola Corp., which combined with blank-check firm VectoIQ Acquisition Corp., also began trading on Thursday.
Three IPOs scheduled to price Thursday in the U.S. could raise a combined total of more than $960 million. Those companies are Chinese e-commerce firm Dada Nexus Ltd., Allentown, Pennsylvania-based Shift4 Payments Inc. and cancer treatment developer Legend Biotech Corp. On Friday, Chinese internet giant NetEase Inc. is planning to price a $2.8 billion second listing in Hong Kong, terms obtained by Bloomberg show.
The offering by ZoomInfo was led by JPMorgan Chase & Co. and Morgan Stanley. The shares are trading on the Nasdaq Global Select Market under the symbol ZI.
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