US-based security screening technology producer Clear Secure went public yesterday in a $409m initial public offering representing exits for corporates Delta Air Lines, United Airlines, Union Square Hospitality Group and Liberty Media.
The company issued 13.2 million class A shares on the New York Stock Exchange priced at $31.00 each, above the IPO’s $27 to $30 range. The shares closed at $40.00 on their first day of trading yesterday.
Founded in 2010, Clear provides a digital platform which transforms a user’s biometric information into a digital code, allowing them to pass through security gates without contact. It increased revenue from $192m in 2019 to over $230m in 2020 while cutting its net loss from $54.2m to $9.3m.
The company had raised over $135m in funding, including $100m from investors including restaurant operator Union Square Hospitality Group’s Enlightened Hospitality Investments vehicle, media group Liberty Media and National Football League’s 32 Equity unit in February this year.
Partnership Fund for New York City, LionTree Partners, Bond, Durable Capital Partners, General Atlantic, Revolution Growth, Safely LV, Michael Jordan’s family office and Jim Murren also took part in the February round.
Air carrier United Airlines invested an undisclosed amount in Clear in July 2019, six months after it received an undisclosed amount from Revolution Growth and T Rowe Price. The latter had previously invested $15m in 2017.
Delta paid an undisclosed amount for a 5% stake in the company in 2016, following a $20m round led by funds and accounts advised by T Rowe Price and backed by Sterling VC, Jeffery H Boyd, Robert Mylod and Bill Miller.
Alclear Investments I and II, the vehicles which bought Clear’s technology from Verified Identity Pass when it was in administration in 2010, holds all of Clear’s 27.7 million class B shares and a combined 21% of its class A shares.
Delta owns 5.7% of approximately 145 million class A shares in the company, diluted from 6.3% in the offering. T Rowe Price holds 14.5% of the class A’s post-IPO, General Atlantic 10.3%, private investor William H. Miller III 8.8% and Durable Capital 5.6%.
The offering’s lead bookrunners are Goldman Sachs, JP Morgan Securities, Allen & Company and Wells Fargo Securities while LionTree Advisors and Stifel Nicolaus are passive bookrunners.
Telsey Advisory Group, Centerview Partners, Loop Capital Markets and Roberts & Ryan Investments are co-managers for the IPO. The underwriters have a 30-day option to buy up to 1.98 million more shares which would potentially lift the size of the offering to nearly $471m.
Photo courtesy of Secure Identity, LLC.
