ZoomInfo Aims To Raise Up To $890M In IPO

ZoomInfo Technologies Inc. boosted the price range for its initial public offering (IPO) on Tuesday (June 2), hoping to raise as much as $890 million.

The Vancouver, Washington-based marketing data company – which is backed by the Carlyle Group, the Washington, D.C. global investment firm with $217 billion of assets under management – said it expects to offer 44.5 million shares priced between $19 and $20 per Class A share, putting its value as high as $7.65 billion. Last week, the IPO was expected to be priced at $16 to $18 per Class A share.

In its filing with the Securities and Exchange Commission (SEC) in February on its intention to file an IPO, ZoomInfo said it has 192,000 paid subscribers on its platform. The company delivers intelligence and analytics on more than 14 million firms, per the filing.

The lead underwriters on the IPO are J.P. Morgan and Morgan Stanley. Among the potential buyers of shares are BlackRock Inc., Fidelity Investments and Dragoneer Investment Group. They each may buy $100 million in shares, according to a Bloomberg News report.

J.P. Morgan & Chase and Morgan Stanley are leading ZoomInfo’s share sale. The company said it plans to list shares on the NASDAQ Global Select Market under the symbol ZI.

During the first quarter that ended March 31, ZoomInfo recorded a loss of $5.9 million on revenue of $102.2 million, compared with a loss of $40.2 million on revenue of $54.6 million in the year-ago period, according to an SEC filing.

The Wall Street Journal reported that ZoomInfo is doing relatively well despite the pandemic.

In an SEC filing, the company said it expects to experience “slowed growth or decline in new customer demand for our platform” and reduced demand from existing customers, but that its yearly value of contracts with new customers increased by 87 percent in April compared to the same month one year ago.