- LegalZoom soared as much as 39% in its IPO debut, giving the firm a valuation of more than $7.5 billion.
- The online legal services provider priced its IPO at $28 per share, raising $535 million.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Shares of LegalZoom spiked as much as 39% in its IPO debut on Wednesday, giving the firm a valuation of more than $7 billion.
The online legal services provider priced its initial public offering at $28 per share and hit an intraday high of $38.68 in the afternoon trading session. LegalZoom had initially guided for an IPO range of $24 to $27. The firm sold 19.1 million shares in the IPO, raising about $535 million in proceeds.
The company generated $10 million in net income on $471 million in revenue in 2020, representing year-over-year revenue growth of 15%, according to its S-1 filing.
LegalZoom was formed in 2001 and co-founded by Robert Shapiro, a prominent lawyer who was on OJ Simpson’s defense team amid his 1995 murder trial.
In 2018, LegalZoom raised $500 million at a $2 billion valuation from Francisco Partners, GPI Capital, Franklin Templeton, and Neuberger Berman.