Olo, the US-headquartered restaurant ordering software provider backed by digital payment processor PayPal, closed its initial public offering at approximately $518m on Friday.
The company raised an initial $450m when it floated on Wednesday, issuing 18 million shares on the New York Stock Exchange priced at $25.00 each. They closed at $30.99 on Friday, after the IPO’s underwriters took up the option to buy a further 2.7 million shares.
Founded in 2005, Olo provides software that powers online ordering for restaurants, overseeing some 1.5 million orders each day. The company generated $98.4m in revenue in 2020, making a $3.1m net profit.
The offering followed $65m in primary funding, including $5m from PayPal, Core Capital Partners, RRE Ventures and David Frankel in 2013. Staley Capital led a $10m round the following year and boutique merchant bank Raine Group invested $40m in 2016.
Olo issues class A shares in the offering, as opposed to the class B shares held by its investors. Raine Group held 27.5% pre-IPO while Tiger Global, which made an $18m secondary investment in 2018, owned 14.1%, RRE Ventures 13.7%, Raqtinda Investments 10.6%, Battery Ventures 9.7%, Staley Capital 7.7% and Wellington Management 6.5%.
Goldman Sachs and JP Morgan were lead book-running managers for the IPO. RBC Capital Markets was book-running manager while Piper Sandler, Stifel Nicolaus, Truist Securities and William Blair & Company were co-managers.
