Vancouver marketing data broker ZoomInfo raised more than $900 million in its initial public offering Thursday, defying the coronavirus outbreak with the region’s biggest IPO ever.
Thursday’s offering values the Vancouver company at $9.3 billion, making it the second-most valuable based in the Portland area, trailing only Nike. ZoomInfo began selling shares under the ticker symbol ZI on the Nasdaq exchange at $21 apiece, well above the $16 to $18 it had targeted last week.
It’s an astonishing debut that demonstrates both investor enthusiasm for ZoomInfo’s business and Wall Street’s optimism that the economy will ride out the coronavirus outbreak. There hadn’t been any major U.S. IPOs during the pandemic, but ZoomInfo’s big debut Thursday followed a big public offering from Warner Music on Wednesday that valued that company at nearly $13 billion.
ZoomInfo
Headquarters: Downtown Vancouver.
Business: Collects data on organizations and their personnel, and sells that information to marketers seeking to target their sales pitches.
Founded: 2007, as DiscoverOrg. The company changed its name last year after acquiring rival ZoomInfo, which had been headquartered in Massachusetts.
2019 sales: $293.3 million, more than double its total from the prior year (before the acquisition, which roughly doubled the company’s size.)
2019 losses: $78 million, compared to a $28.6 million loss the prior year. ZoomInfo holds $1.2 billion in long-term debt and interest payments are primarily responsible for its losses.
The coronavirus outbreak prevented ZoomInfo from ringing the opening bell in person, overlooking the trading floor, as newly public companies customarily do. ZoomInfo did it virtually instead Thursday, with corporate images displayed on a giant video billboard above Manhattan.
Although ZoomInfo now ranks near the top among the Portland area’s largest companies, it’s not widely known in the region. That’s partly because it changed its name from DiscoverOrg last year, taking the name of a Massachusetts rival it acquired.
Its business is also somewhat arcane – hoarding data on large organizations and their personnel, then selling that information to marketers who use it to target their sales pitches.
And ZoomInfo isn’t a major employer, with about 1,300 workers across the company. Historically, about half its workforce has been at its headquarters in an office tower overlooking Interstate 5 in downtown Vancouver.
CEO Henry Schuck, 36, started DiscoverOrg in 2007 and continues to run the business. He had previously been a vice president of another business intelligence company, iProfile.
ZoomInfo paid Schuck $4.6 million last year but he controls about a fifth of the company’s stock. So Thursday’s IPO makes him an instant billionaire, with shares worth about $1.6 billion.
CEO Henry Schuck in ZoomInfo's downtown Vancouver headquarters. The company's IPO made him an instant billionaire. (Oregonian file photo.)
ZoomInfo had sales of nearly $300 million last year, doubling its revenue by virtue of the big acquisition. The Vancouver company lost $78 million, owing primarily to interest payments on $1.2 billion in long-term debt.
Paying down that debt will be one of the major ways ZoomInfo says it will use the millions it raised in Tuesday’s offering.
Wall Street has recovered most of the value stocks lost in the early days of the pandemic, when stocks fell by roughly 30%. But the coronavirus is taking a severe toll on the broader economy, which ZoomInfo acknowledged in its IPO filing.
The Vancouver company said it has laid off 100 employees this spring due to the economic impacts of the coronavirus, and the company said it expects “slowed growth or decline in new customer demand” due to the pandemic.
The economy in the Portland area had been thriving before the pandemic hit, with jobless rates near an all-time low, but the region rarely spawns large, new companies. Oregon and Southwest Washington’s labor markets are increasingly dependent on regional outposts of large out-of-state companies.
In the Portland area, ZoomInfo’s IPO is just the second of any size in nearly 16 years – the other was laser manufacturer nLight, which went public in 2018.
-- Mike Rogoway | mrogoway@oregonian.com | twitter: @rogoway | 503-294-7699
Subscribe to Oregonian/OregonLive newsletters and podcasts for the latest news and top stories.
"company" - Google News
June 04, 2020 at 08:49PM
https://ift.tt/2Xv7CiU
ZoomInfo’s IPO is the Portland area’s biggest ever, valuing company at $8.3 billion - OregonLive
"company" - Google News
https://ift.tt/33ZInFA
https://ift.tt/3fk35XJ
Bagikan Berita Ini
0 Response to "ZoomInfo’s IPO is the Portland area’s biggest ever, valuing company at $8.3 billion - OregonLive"
Post a Comment