AAA Cardlytics carts in $70m from IPO

Cardlytics carts in $70m from IPO

Cardlytics, a consumer purchase data platform backed by marketing and loyalty analytics provider Aimia and financial technology provider Fidelity Information Services (FIS), secured $70.2m when it went public on Friday.

The company issued 5.4 million shares on the Nasdaq Global Market priced at $13.00 each, the foot of the initial public offering’s $13 to $15 range. The IPO’s underwriters have the 30-day option to acquire 810,000 more shares, increasing the size of the offering to $80.7m.

Cardlytics has created a purchase intelligence platform that analyses consumer purchase data sourced from about 2,000 financial institutions. It tracked more than 18 billion in-store and online purchases in 2016.

The company generated $91.1m in revenue in the first nine months of 2017, making a $15.6m net loss in the process. It had raised approximately $209m in financing prior to the IPO, according to regulatory filings and press releases.

Aimia affiliate Aeroplan Holdings Europe supplied $4m of the $27m Cardlytics raised in a 2016 round that included Polaris Venture Partners, Canaan Partners, Discovery Capital and private investors Scott Grimes and Lynne Laube.

The corporate also invested $18m in the company the same year, providing the financing in the form of convertible promissory notes.

Aimia’s 21.3% stake was diluted to 15.3% in the offering. Other notable Cardlytics shareholders include Canaan (16.6% post-IPO), Polaris (13.5%), Discovery (7.7%) and FIS (5.3%). Cardlytics’ shares opened at $12.10 on Friday and closed at $13.37.

BofA Merrill Lynch and JP Morgan are joint book-running managers for the IPO. Wells Fargo Securities and SunTrust Robinson Humphrey are book-runners while Raymond James and KeyBanc Capital Markets are co-managers.

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