Job website ZipRecruiter valued at $2.7 billion in NYSE debut

FILE PHOTO: The front facade of the NYSE is seen in New York

(Reuters) -Online job marketplace ZipRecruiter Inc was valued at $2.7 billion in its debut on the New York Stock Exchange on Wednesday after shares jumped more than 10%, reflecting investor optimism over job growth as the U.S. economy hums along.

The company’s stock opened at $20, up from the reference price of $18 per share set on Tuesday.

Founded in 2010, Santa Monica, California-based ZipRecruiter operates an online marketplace connecting employers and job seekers.

The company, which competes with Indeed and Microsoft Corp owned LinkedIn, charges a fee for job listings while it is free for job seekers posting resumes.

ZipRecruiter was valued at $1.5 billion in a fundraising round in 2018, with investment from Wellington Management Company and venture capital firm IVP.

The company’s stock market debut comes as U.S. job growth unexpectedly slowed in April, with some initial data for May also showing signs of weakness.

Still, economists generally are expecting strong job growth in the months to come, as vaccinations gather pace and the economy reopens.

The number of Americans filing new claims for unemployment benefits dropped further below 500,000 for the week ended May 15, with employers, ranging from manufacturing to restaurants and bars, scrambling to find workers.

ZipRecruiter has forecast a 79% to 86% jump in second-quarter revenue, after reporting an 11% rise in the first quarter of 2021.

The company’s job posting business has rebounded after taking a hit from the fallout of the pandemic last year.

ZipRecruiter’s stock market listing, done through a direct listing where no shares are sold ahead of the opening, follows a record 15-month run in the U.S. IPO market, as investors rushed to buy stocks of high-growth tech companies.

Reuters first reported the company’s plans to go public.

(Reporting by Noor Zainab Hussain in Bengaluru; editing by Sriraj Kalluvila)