Expensify, the US-based expense management software producer backed by cybersecurity services provider Barracuda Networks, closed its initial public offering at $302m on Monday.
The company issued 9.73 million class A shares priced at $27.00 last week, at the top of its $25 to $27 range, to raise approximately $263m. About 2.6 million were issued by Expensify while the other 7.1 million were secondary sales from existing shareholders.
The underwriters took up the option to buy nearly 1.46 million more shares after the shares subsequently rose in price, and they closed at $44.13 yesterday.
Founded in 2008, Expensify has developed a cloud-based software platform with 53,000 corporate clients as of the end of June 2021 that enables them to manage employee expenses. It generated a net profit of $14.7m from $65m in revenue in the first half of 2021.
Openview Venture Partners led the company’s $17.5m series C round in 2015 backed by Redpoint Partners, Point Judith Capital and Hillsven Capital. It had raised a total of $10.2m from investors including Barracuda, Redpoint Ventures, Hillsven Capital, Baseline Capital and Travis Kalanick between 2009 and 2014.
Expensify’s share structure consists of 70.1 million class A shares, 7.3 million LT10 shares and 6.2 million LT50 shares, the last two classes of which are owned solely by its executives.
The company’s largest external shareholders are Openview Venture Partners, which holds 15.7% of its class A shares post-IPO, Hillsven (14.1%) affiliates of Point Judith Capital (11.2%), a vehicle called Octopus Head (9.7%) and Laurel Trust Company (3.7%).
JP Morgan Securities, Citigroup Global Markets and BofA Securities were joint lead bookrunners for the offering, while Piper Sandler, Loop Capital Markets and JMP Securities were co-managers.
