Vancouver, Wash.-based ZoomInfo Technologies saw its stock double for a time Thursday (June 4) as it staged a successful initial public offering in the middle of the COVID-19 economic downturn.
ZoomInfo traded as high as $42 a share on the Nasdaq as soon as the stock opened on the Nasdaq at about 12:30 p.m. ET. That represented a 100 percent gain from the $21 the company had priced the 44.5 million shares it offered to the public. The stock, which trades under the ticker symbol "ZI," later pulled back some, closing at $34 -- a 61.9 percent gain from the company's IPO price. Last week, Zoom had expected to price its shares at only $16 to $18, as PYMNTS reported.
The $21 price valued the company at more than $8 billion, and Thursday's additional gains pushed that to some $13 billion. That's an impressive showing giving that during the pandemic’s widespread shutdowns of the U.S. economy, the IPO market had largely been closed.
Just to note, ZoomInfo shouldn't be confused with Zoom Video Communications, the video-conferencing company that's suddenly everywhere during the COVID-19 crisis. Zoom Video is a separate company that trades under the ticker symbol "ZM."
Instead, ZoomInfo offers subscription software that marketing and sales professionals use for business leads. ZoomInfo has 192,000 paid subscribers on its platform, the company said in its Securities and Exchange Commission filing for the IPO in February. ZoomInfo said it also delivers intelligence and analytics on more than 14 million firms.
ZoomInfo lost $5.9 million on revenue of $10 during the first quarter 2.2 million, compared with $40.2 million of red ink on revenue of $54.6 million in the same period last year, according to an SEC filing. However, the company also said its yearly value of contracts with new customers increased by 87 percent in April compared to the same month one year ago.
The Washington State company is backed by the Carlyle Group, the Washington, D.C., global investment firm that has $217 billion of assets under management. JPMorgan Chase and Morgan Stanley led ZoomInfo’s share sale.