Shares of U.S. business analytics firm Dun & Bradstreet Holdings Inc DNB.N ended trading up 15% in their market debut on Wednesday, riding on the back of a recent recovery in investor appetite for new stocks.
Shares closed at $25 on the New York Stock Exchange, compared to their initial public offering (IPO) price of $22. The closing price values the company at $10.5 billion.
The company on Tuesday raised $1.7 billion by upsizing its offering and pricing it above its targeted range of $19-$21 per share, indicating strong demand.
Dun & Bradstreet's IPO is the third-largest of the 39 expected in the current quarter, IPO research firm Renaissance Capital said bit.ly/3ijZdaA in a note.
The Short Hills, New Jersey-based company provides businesses with data and analytics services and has more than 5,000 employees in North America, Europe and Asia, according to its website.
The listing comes less than two years after an investor group, led by former Blackstone Group Inc (BX.N) dealmaker Chinh Chu, took Dun & Bradstreet private in a $6.9 billion deal.
“We are coming back to the public market because we hit our checklist of things we needed to get done and because we need that additional capital to drive down our debt and to improve the company,” Dun & Bradstreet President Stephen Daffron said in an interview.
Dun & Bradstreet’s investor group also includes CC Capital Partners, Cannae Holdings Inc (CNNE.N), Bilcar, Black Knight Inc (BKI.N) and Thomas H. Lee Partners.
“They (PE investors) so far have turned a loss of more than $200 million in the first quarter of the year to a $40 million profit,” Erik Gordon, a professor at the University of Michigan’s Ross School of Business said.
Goldman Sachs, BofA Securities, J.P. Morgan, Barclays served as lead underwriters for the IPO.