Dun & Bradstreet IPO Stronger Than Expected - Raises $1.7B

Dun & Bradstreet, the business-information provider, in its IPO sold more stock and at a higher price than had been expected.
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Dun & Bradstreet Holdings DNB raised $1.7 billion in its initial public offering after the business information provider sold more stock than expected at a price above its indicated price range.

The Short Hills, N.J., company intends to list its shares on the New York Stock Exchange on Wednesday.

Dun & Bradstreet priced 78.3 million shares at $22 each. It was previously seeking to sell 65.75 million shares for $19 to $21 apiece.

The underwriters have an option on as many as an additional 11.7 million shares.

"We are the world’s leading source of commercial information and insight on businesses, enabling customers to decide with confidence for over 171 years," the company said in its IPO prospectus. "Our global commercial database contains more than 215 million business records."

Dun & Bradstreet said in the prospectus that it would use the proceeds to redeem $1.27 billion of preferred stock, as well as repay $342 million of bonds outstanding.

The company in mid-May had confidentially submitted to the Securities and Exchange Commission a plan to go public.

The deal comes just 16 months after D&B was taken private by an investor group led by CC Capital, Cannae Holdings, Bilcar, Black Knight and funds affiliated with Thomas H. Lee Partners. 

The IPO values Dun & Bradstreet at close to $9 billion, excluding its total debt of more than $9.1 billion. 

Cannae, Black Knight and CC Capital agreed to invest a total $400 million in the company as part of the offering.

Goldman Sachs, Bank of America Securities, J.P. Morgan and Barclays are lead book-running managers and representatives of the underwriters for the offering.

The initial public offering is expected to close on July 6.

The second quarter is expected to see 39 IPOs raise $15 billion, according to Renaissance Capital, after the coronavirus pandemic caused the slowest April and May since the Great Recession. 

IPO activity roared back in June, and during the quarter nearly every IPO upsized or priced above the midpoint, while IPOs averaged a 38% first-day pop.