Wednesday 30 June 2021 6:49 pm

Legal services company LegalZoom makes $7bn Nasdaq debut

Daily news reporter in City A.M.'s London newsroom

LegalZoom shares today opened 31 per cent above the company’s offer price in its Nasdaq debut, valuing the online legal services company at $7bn (£5bn). The legal tech giant helps users generate legal documents without lawyers.

Shares opened at $36.75 (£26.61), up from the company’s initial public offering (IPO) on Tuesday which saw over 19m shares sell at $28 (£20.28) each.

The private-equity-backed company offers a range of services including estate planning, divorce, name change and residential leases.

Founded in 2001, it expanded to the UK in 2016. Two years later, it was valued at $2bn (£1.4bn) and had 4m customers worldwide, 750,000 of which were in the UK.

In 2020, the company generated revenue of $471m (around £337m) and continued to grow by 27 per cent in the first quarter of 2021.

LegalZoom previously postponed a planned IPO in 2012, eventually pulling the offering in 2014.