LegalZoom.com, which provides legal and compliance solutions in the US, announced terms for its IPO on Monday.
The Glendale, CA-based company plans to raise $488 million by offering 19.1 million shares at a price range of $24 to $27. New investors BlackRock and Neuberger Berman have indicated an interest in purchasing up to an aggregate of $150 million (31%) worth of shares on the deal. Insider TCV has agreed to purchase $90 million worth of shares in a concurrent private placement. At the midpoint of the proposed range, LegalZoom.com would command a fully diluted market value of $5.3 billion.
LegalZoom states that it is a leading online platform for legal and compliance solutions, claiming that 10% of new LLCs and 5% of new corporations in the US were formed via LegalZoom in 2020. Along with formation, LegalZoom offerings include ongoing compliance and tax advice and filings, trademark filings, and estate plans. The company operates across all 50 states and over 3,000 counties in the US.
LegalZoom.com was founded in 1999 and booked $499 million in sales for the 12 months ended March 31, 2021. It plans to list on the Nasdaq under the symbol LZ. J.P. Morgan, Morgan Stanley, Barclays, BofA Securities, Citi, Credit Suisse, and Jefferies are the joint bookrunners on the deal. It is expected to price during the week of June 28, 2021.
