ZoomInfo has repriced its IPO with a target to hit $890 million. This new projection is aimed at offering each share at $19 to $20 following boosted interests from investors.
Current IPO markets are not impressive as prices continue to dip. Several factors are responsible for the final listing of an IPO which includes overall customer demand on the company’s public offerings. ZoomInfo is currently a sensation among investors as the company’s IPO continues to garner interests from investors, a development that has spiked an increase in the IPO listing price of $1 as confirmed by a source close to the company. The company shares a similar name with Zoom Video Communications Inc. (NASDAQ: ZM) which gained popularity during the coronavirus pandemic but ZoomInfo will be listed with the ticker symbol ZI and thus serves as the distinguishing sign.
ZoomInfo is a software as a service (SaaS) provider that sells access to its database of information about business people and companies to sales, marketing, and recruiting professionals. ZoomInfo was founded in 2000 by Yonatan Stern as Eliyon Technologies and was acquired by DiscoverOrg in 2019.
The ZoomInfo business model is such that it sells access to Human Resource Professionals, and individuals interested in targeting ads to a specific group of businesspeople and tracking their responses. The business has proven to be profitable recording a revenue of $350 million in 2019.
ZoomInfo IPO
Great turnarounds came as a result of its acquisition by DiscoverOrg, a recent tag is the company’s readiness to go public. The firm has attracted significant interest from investors as it initially plans to list its shares at $16 to $18 per share with the expectation to raise about $801 million in funding. Currently, the share price is expected to sell from $19 and $20 per share in a new bid to raise up to $890 million.
The new listing may be attributed to improved performance figures as the company only recorded a loss of $5.9 million on revenue of $102.2 million in Q1 2020 as against a whopping loss of $40.2 million on revenue of $54.6 million in the year-ago period. While a loss does not indicate growth, bridging the loss margin is definitely attractive to investors.
The final selling price of the ZoomInfo IPO has not been finalized. There is a high expectation from the Artificial Intelligence-powered company led by a visionary CEO Henry Schuck. If the momentum of this current market indicator of investor’s interest keeps up the pace, the company’s stock may perform exceptionally well pre-listing. This is a forecast that investors will need to analyze with further details as will emerge in days to come.
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