The ZoomInfo (NASDAQ:ZI) IPO is underway Thursday for the subscription software company’s shares.
Here’s what potential investors need to know about the ZoomInfo IPO.
- The company’s IPO includes 44.5 million shares of its Class A common stock.
- The shares are price at $21 each.
- There’s also a 30-day option for underwriters of the IPO to purchase an additional 6.675 million shares.
- The joint lead book-runners of the IPO are J.P. Morgan and Morgan Stanley.
- Trading of the stock starts today on the Nasdaq Global Select Market under the ticker “ZI”.
- The offering will allow the company to raise between 934.5 million and $1.08 billion.
- ZoomInfo is expecting net proceeds from the IPO to come in at around $887 million.
- The company already has plans for how to use the money it will gain from the IPO.
- That includes spending $274 million of it on purchasing all outstanding Series A preferred units of its subsidiary ZoomInfo Holdings LLC.
- The company plans to spend another $370 million to pay off its second lien term loans.
- It will also allocate $35 million for paying off borrowings from its first lien revolving credit facility.
- The plan for the money also includes using $43 million to buy outstanding ZoomInfo OpCo equity interests from certain holders.
- It will then use the rest of the money to cover expenses of the IPO and for other general uses.
ZO stock was up 67.1% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.