Yahoo Finance Walmart-Backed Ibotta, Holders Raise $577 Million in IPO Priced Above Range
(Bloomberg) -- Ibotta Inc., a digital marketing software firm that counts Walmart Inc. as a backer, and a group of shareholders raised about $577.3 million in an initial public offering priced above a marketed range.
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The Denver-based company, which helps brands deliver mobile promotions through rewards and rebates, and the shareholders sold 6.56 million shares for $88 each, according to terms of the deal seen by Bloomberg News.
At that price, Ibotta would have a market value of $2.67 billion, based on the outstanding shares listed in its filings with the US Securities and Exchange Commission. Including stock options and restricted share units, its fully diluted value would be closer to $3 billion.
Ibotta, which had marketed the shares for $76 to $84 each, increased the size of the offering on Tuesday from about 5.6 million, according to its filings.
With the upsize, more than 4 million shares in the IPO were to be sold by current shareholders including Chief Executive Officer Bryan Leach and an arm of Koch Industries Inc., the filings show. The company offered 2.5 million of newly issued shares.
The listing brings the total raised via IPOs on US exchanges this year to about $12 billion, compared with only $3.9 billion at this point in 2023, according to data compiled by Bloomberg. That rebound follows a nearly two-year lull in offerings following an all-time high in 2021.
Also on Wednesday, Centuri Holdings Inc., the infrastructure services business of power company Southwest Gas Holdings Inc., raised about $314.8 million in an IPO priced at the top of a marketed range and a concurrent private placement. Investment funds backed by billionaire activist Carl Icahn were set to buy shares worth about $54 billion at the IPO price as part of the private placement.
Read More: Wall Street Bankers Hail IPO Market’s Budding Revival
Ibotta handles promotions for more than 2,400 brands, such as Coca-Cola, Whirlpool and Hallmark, its filings show. It had net income of $38 million on revenue of $320 million last year, compared with a net loss of $55 million on revenue of $211 million the previous year, according to the filings.
In 2019, Ibotta was valued at $1 billion in a series D funding round led by Koch Disruptive Technologies, a Koch Industries investment arm. Koch remains one of Ibotta’s largest investors and will own about 15% of the company’s Class A shares after the offering, the filings show.
Clark Jermoluk Founders Fund 1 LLC is set to own about 19% of the Class A shares once the company is public. Walmart, which has the right to buy more than 3.5 million shares, will have at least 8.2% of the Class A stock.
Ibotta founder and CEO Leach owns all of the company’s Class B shares, and will have 71% of the voting power after the offering, according to the filings.
The IPO is being led by Goldman Sachs Group Inc., Citigroup Inc. and Bank of America Corp. Ibotta shares are expected to begin trading Thursday on the New York Stock Exchange under the symbol IBTA.
(Updates with Centuri Holdings IPO in seventh paragraph.)
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