Shares of LegalZoom opened on Wednesday 31 percent above its offer price, valuing the online legal services company at $7 billion in its Nasdaq debut, its second foray into a stock market listing.
The stock opened at $36.75 per share, well above the initial public offering price of $28 per share.
LegalZoom, which says its mission is “democratic” law, was founded in 2001 and offers a wide range of services, including estate planning, divorces, name changes and residential leases.
The Glendale, California-based company was founded by Robert Shapiro, who was part of OJ Simpson’s legal defense team. He worked on the case with Robert Kardashian, the late father of celebrity Kim Kardashian.
LegalZoom first applied for an IPO in 2012, which was postponed and then withdrew two years later. It was valued at $2 billion in 2018 after a $500 million investment led by Francisco Partners and GPI Capital.
The company sold approximately 19.1 million shares in its IPO on Tuesday, raising approximately $535.4 million.
Shares were priced well above the $27 per share limit announced before the high end of $24 per share.
LegalZoom, which faces stiff competition from single lawyers and law firms, has been involved in several lawsuits alleging unauthorized practice of law or unfair competition. However, the company denies these allegations.
LegalZoom said in its prospectus earlier this month that some funds managed by subsidiaries of BlackRock and associates of Neuberger Berman Investment Advisors may buy shares up to $75 million at the IPO price.
Separately, shares of Intap, a software provider to professional services and capital markets firms backed by Singapore-based Temasek and private equity firm Great Hill Partners, rose 3 percent in their opening quarter.