Advent-backed NIQ valued at $6.1 billion as shares slip in NYSE debut

Audio By Carbonatix

Enlarge

By Niket Nishant

(Reuters) -Advent-backed consumer insights company NIQ Global was valued at $6.1 billion as its shares dipped 3.6% in their NYSE debut on Wednesday, marking a rare setback in an otherwise strong stretch for initial public offerings.

The stock opened at $20.25 per share, compared with the IPO price of $21 per share.

While strong equity markets and upbeat IPO debuts have boosted optimism among companies and investors alike, NIQ’s performance highlights that investors continue to be picky.

“Although there is excitement around many of the technology IPOs, there is still a quality bar that any issuer must clear,” said Sam Kerr, head of equity capital markets at Mergermarket.

The Chicago, Illinois-based company had priced its shares at the lower end of the $20 to $24 range it marketed earlier, raising $1.05 billion.

NIQ delivers insights on consumer shopping behavior that brands and retailers use to fine-tune their products and strategies.

It has about 23,000 clients including Coca-Cola, Nestlé and Sony and is led by Jim Peck, former CEO of credit information company, TransUnion.

NIQ’s revenue was $965.9 million for the three months ended March 31, slightly higher than a year earlier. Net loss attributable to it narrowed to $73.7 million, from $173.9 million a year ago.

Proceeds from the IPO will be used to repay some debt and for other general corporate purposes, NIQ said. Circana and YouGov are some of the company’s competitors.

J.P. Morgan, BofA Securities and UBS Investment Bank are among the underwriters for the IPO.

The listing came more than four years after NIQ was spun off from Nielsen Holdings.

(Reporting by Niket Nishant in Bengaluru; Editing by Pooja Desai and Alan Barona)