LegalZoom Reveals Pricing Of Stockholder Equity Offering At 10% Discount

LegalZoom.com Inc LZ reported the pricing of a previously announced public offering of 14 million shares of its common stock by a stockholder at $10.00 per share.

The offer price represents a 9.8% discount to the company’s closing price on September 6, 2023.

The secondary offering was upsized from the previously announced offering of 13 million shares.

The selling stockholder also has granted the underwriters a 30-day option to purchase up to an additional 2.1 million shares. The offering is expected to close on or about September 11, 2023.

LegalZoom is not offering any shares of its common stock and will not receive any proceeds from the sale of shares.

In addition, on September 5, 2023, LegalZoom entered into a stock purchase agreement with the selling stockholder, under which LegalZoom intends to repurchase $45.1 million worth of shares in a private, non-underwritten transaction. The company intends to fund the stock repurchase from cash on hand, and will be part of its existing share repurchase program.

Also, on September 5, 2023, the selling stockholder entered into a stock purchase agreement with entities affiliated with Technology Crossover Ventures, an existing stockholder of LegalZoom, to purchase $20.0 million of shares directly from the selling stockholder.

Price Action: LZ shares closed lower by 1.86% at $11.30 on Wednesday.