IPOs to Revive Market include Warner Music and Zoom Info


A series of new IPOs will lift the market and show others going public is beneficial to your future and bottom line.

Warner Music Group Corp. and ZoomInfo Technologies Inc. plan to list their shares this week, following the recent stock market rebound, according to The Wall Street Journal.

Warner Music and ZoomInfo together are expected to raise more than $2.5 billion. According to Dealogic, with three other companies, including Applied Molecular Transport Inc., Pliant Therapeutics Inc. and Shift4 Payments LLC., the listings would become the biggest U.S. initial public offerings this year.

More companies would resume their listing plans in the coming months if this week’s debuts succeed.

Online used-car seller Vroom Inc. launched a roadshow to market its shares this week. Grocery giant Albertsons Cos. plans to do so this month, while Airbnb Inc.’s IPO is highly likely to be delayed until 2021 because of the turmoil in the travel and hospitality industry.

Warner Music plans to sell each share with a range of $23 to $26, which is expected to value the company at $11.7 billion to $13.3 billion and make it the biggest IPO of 2020.

ZoomInfo expects to sell 44.5 million shares at between $19 and $20 each, potentially raising more than $850 million for the firm. It would become the biggest technology IPO of the year.

Both Warner Music and ZoomInfo launched the so-called testing-the-waters meetings before the country’s lockdown. Executives at both companies then switched to virtual roadshows to persuade investors to buy their stock.

Warner Music has discussed with institutions that, along with the Chinese internet giant Tencent Holdings Ltd., would contribute a total of more than $1 billion of its fundraising goal. ZoomInfo has worked with anchor investors that, including BlackRock Inc., Dragoneer Investment Group and Fidelity, would buy up to $100 million of shares each in the firm’s IPO.

Compared with the same period last year, ZoomInfo reported an 87% increasing in its annualized value of contracts with new customers in April. Warner Music’s streaming revenue also rose 12% in April.

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Economics, Finance and Investing