ZoomInfo founders become billionaires after stock more than doubles in 3-day rally
- ZoomInfo founders Henry Schuck and Kirk Brown became billionaires just days after the company's shares began trading on the Nasdaq exchange, Bloomberg reported Monday.
- The business-intelligence firm's shares began trading publicly on Thursday at $21 each. Investors flocked to the debut, pushing the stock price as high as $42 before it closed at $34.
- The stock continued to rally through Friday and Monday, ending Monday's session at $44.69.
- Schuck holds a 10% stake in ZoomInfo, while Brown owns 7.3% of the company.
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The business-intelligence company's stock price doubled in its June 4 trading debut, spiking as high as $42 before closing at $34. Friday saw the rally continue before shares closed even higher, at $44.69, on Monday. The Nasdaq-hosted initial public offering raised more than $900 million for the company, signaling a strong bounce-back for the IPO market after issuances paused in the early days of the coronavirus pandemic.
The post-offering upturn created a major windfall for the two founders. Schuck holds a 10% stake in ZoomInfo, while Brown owns 7.3% of the firm, according to a prospectus.
"We built some really solid relationships going into the roadshow," Schuck told Bloomberg TV, adding "we felt good" about pitching ZoomInfo to investors with a virtual roadshow instead of a more traditional event.
The newly minted billionaires join a growing coalition of founders quickly growing richer through pandemic-era dealmaking. Len Blavatnik's net worth soared by $9.1 billion since Warner Music Group, which he purchased in 2011, completed its IPO on Wednesday, according to Bloomberg. The label conglomerate's stock has since leaped 24% as of Monday's close.
A similar jump for shares of electric truck-maker Nikola pushed founder Trevor Milton's net worth to $4.4 billion last week after the firm completed a reverse merger with VectoIQ, Bloomberg reported. Milton's fortune likely spiked higher on Monday after Nikola shares rocketed 103%.
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