ZoomInfo Technologies’ stock climbs 90% in market debut in the United States

Written by: Wajeeh Khan
June 4, 2020
  • ZoomInfo Technologies’ stock climbs 90% in market debut in the United States.
  • The company raises roughly £742.35 million from its initial public offering (IPO).
  • The Waltham-headquartered technology firm is now valued at £12.15 billion.

Carlyle-backed ZoomInfo Technologies Inc. debuted in the United States market on Thursday. The business intelligence company recorded a little under 100% increase in its stock on the very first day of public trading. ZoomInfo raised roughly £742.35 million that made it the largest U.S. initial public offering (IPO) in the technology sector in 2020.

ZoomInfo’s public listing is the latest in a streak of IPOs in the U.S. this week. The IPO market was brought to its knees in recent months due to the Coronavirus pandemic that has so far infected more than 1.9 million people in the United States and caused a little under 110,000 deaths.  

ZoomInfo prices IPO at £16.68 per share

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The Waltham-headquartered company priced its IPO at £16.68 per share. On Thursday, its stock opened at £31.78 that marks an about 90% increase as compared to the IPO price and resulted in ZoomInfo’s market valuation climbing to £12.15 billion. Later in the day, the company retreated slightly to settle around 76% up.

The U.S. subscription-based SaaS (Software as a service) firm is backed by two private equity companies, TA Associates and Carlyle Group (NASDAQ: CG). ZoomInfo had originally planned its IPO earlier in 2020, but the plan had to be postponed due to COVID-19 that disrupted the global financial markets. This worked in favour of the technology company that saw an 87% year over year increase in business in April.

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CEO Henry Schuck’s comments on Thursday

According to CEO Henry Schuck of ZoomInfo Technologies:

“What we saw in that interim period of time was company after company coming to us and saying, ‘Look, we’re digitizing our salesforce.’”

ZoomInfo provides a subscription-based service that helps companies identify potential customers and launch effective marketing campaigns leading to upbeat sales.

In the U.S. IPO market, Warner Music Group also made a headline earlier this week. The world’s 3rd biggest recording label posted a 20.5% intraday gain as it debuted on the stock market on Wednesday. Other prominent companies that are in line to price IPO on Thursday include Shift4 Payments (financial technology company) and Dada Nexus (online grocery firm).

The Carlyle Group climbed roughly 3% in the morning session but lost all intraday gains to close around 1% down on Thursday. At £23.63 per share, the company is currently about 7% down year to date in the stock market after recovering from a low of £13.50 per share in the third week of March.