US-based banking software producer nCino went public yesterday in a $250m initial public offering that scored an exit for enterprise software provider Salesforce’s corporate venturing unit, Salesforce Ventures.
The IPO consisted of 8.06 million shares priced at $31.00 each, significantly above the $22 to $24 nCino had set last week. Its shares almost tripled to close at $91.59 on their first day of trading on the Nasdaq Global Select Market yesterday, valuing it at more than $8.2bn.
More than 1,100 financial institutions utilise nCino’s operating system, which streamlines banking practices and provides them with detailed analytics on their data. It increased revenue more than 50% to $138m for the year ending January 31, 2020, while posting a $27.7m loss.
The company had raised more than $218m prior to the offering. Salesforce Ventures first invested in 2015 when it added an undisclosed sum to the $29m in series B funding supplied by Insight Partners, existing backer Wellington Management, John Mack and Gene Ludwig earlier the same year.
The series B round was followed by a $51.5m series C for nCino led by Salesforce Ventures and backed by an undisclosed existing investor in early 2018. It added $80m from Salesforce Ventures and funds and accounts advised by T. Rowe Price in October 2019.
Insight Partners’ 46.6% share of nCino was cut to 42.4% in the offering. Salesforce’s stake was diluted from 13.2% to 12% while Wellington Management’s was reduced from 9.5% to 8.6%.
BofA Securities and Barclays are lead book-running managers for the IPO while KeyBanc Capital Markets, SunTrust Robinson Humphrey, Piper Sandler, Raymond James and Macquarie Capital are book-running managers.
The underwriters have the option to buy almost 1.21 million additional shares over the next 30 days that will increase the size of the IPO to more than $287m.
