Bill.com, a US-based back-office automation software provider backed by corporates Fleetcor, Mastercard and American Express, will raise just over $216m when it floats on the New York Stock Exchange today.
The offering consists of approximately 9.82 million shares priced at $22.00 each. Bill had increased the range of the offering from $16 to $18, to $19 to $21 on Tuesday. The IPO values the company at about $1.55bn.
Founded in 2006, Bill produces cloud-based software that enables small and medium-size businesses to automate back-end financial processes like generating and processing invoices or making regular payments. It integrates with their existing systems and helps them manage their cash.
The company increased revenue from $22.4m to $35.2m in the three months ending September 2019, while its losses rose from $880,000 to $5.7m over the same period. It had raised more than $275m in venture funding pre-IPO.
Investment manager Franklin Templeton led an $88m round for the company in April this year that included payment services provider Mastercard, payment technology producer Fleetcor, Fidelity Investments Canada, Kayne Anderson Rudnick, Cross Creek and Temasek, at a valuation exceeding $1bn.
The company’s first corporate funding had come in a $15.5m series D round in 2011 featuring banking group Citi’s Financial Partners Fund (FPF), DCM Ventures, August Capital, Jafco Ventures, TTV Capital (then Total Technology Ventures) and Emergence Capital Partners.
Bill added $38m in a 2013 round led by Scale Venture Partners and backed by payment services firm Mastercard, Bank of America, Fifth Third Bank, Commerce Ventures, August Capital, Napier Park Global Capital, TTV Capital, Jafco Ventures, Emergence Capital, DCM and Pete Kight.
American Express Ventures, DCM, Scale Venture Partners, August Capital, Napier Park, Commerce Ventures and Silicon Valley Bank supplied $50m in series F funding for the company two years later, before Temasek and financial services firm JPMorgan Chase co-led a $100m round in 2017.
FPF’s stake was diluted from 7.8% to 6.7% in the offering, Bill’s other main investors being DCM (14% post-IPO), August Capital (11%), Temasek (7.9%), Emergence Capital (7%), Scale Venture Partners (5.3%) and Icon Ventures (4.9%).
Affiliates of Dragoneer Investment Group expressed interest in buying 1.5 million shares in the offering, which would equate to $33m, but have not confirmed whether they will do so.
Goldman Sachs, BofA Securities and Jefferies are lead book-running managers for the IPO while KeyBanc Capital Markets is a book-running manager and Canaccord Genuity, Needham & Company and William Blair are co-managers.
The underwriters can buy an additional $32.4m of shares over a 30-day period, which would increase the size of the offering to more than $248m.
