Alkami Technology, a US-based digital banking platform developer backed by financial services and investment group Fidelity, raised $180m in an initial public offering on the Nasdaq Global Select Market yesterday.
The company issued 6 million shares priced at $30.00 each, above the $26 to $28 range set for the IPO earlier this month. They closed at $41.63 on their first day of trading yesterday, representing a market capitalisation of approximately $3.44bn.
Founded in 2009, Alkami operates a platform that enables banks and credit unions to provide digital banking services to their customers. It platform is used by 151 financial institutions which collectively provide their services to nearly 9.7 million consumers and businesses.
The company generated $112m of revenue in 2020, up more than 50% from $73.5m the previous year. It reported a $51.4m net loss for 2020, which it attributed to investments in its sales, post-sales, marketing and product development activities.
Alkami had raised at least $308m pre-IPO, including a $140m round led by D1 Capital Partners in September 2020 that was also backed by Fidelity, Franklin Templeton and Stockbridge Investors.
Venture capital firm General Atlantic led a $55m series E round for the company in mid-2019 that also featured fellow existing investors S3 Ventures and Argonaut Private Equity as well as MissionOG.
General Atlantic, the largest non-executive shareholder in Alkami, had its stake diluted from 24.1% to 22.5% through the offering. Its other notable investors include S3 Ventures, which now holds a 22.3% stake, as well as Argonaut Private Equity (15.2%) and D1 Capital Partners (5.3%).
Goldman Sachs, JP Morgan and Barclays are joint book-running managers for the IPO and have a 30-day option to purchase an additional 900,000 shares to potentially boost its size to $207m.