Olo, a US-based restaurant technology provider backed by digital payment processor PayPal, set the terms for an initial public offering yesterday that could raise up to $324m.
The company plans to issue 18 million shares on the New York Stock Exchange priced at $16.00 to $18.00, hypothetically raising between $288m and $324m at either end of the range.
Founded in 2005, Olo provides on-demand ordering and delivery software tailored for use by restaurants. Its customers include restaurant chains Applebee’s Cheesecake Factory, Chili’s, Dairy Queen, Denny’s, Five Guys Burgers & Fries, Jamba Juice, Shake Shack and Wingstop.
The company nearly doubled revenue from $50.7m to $98.4m in 2020 while converting an $8.3m net loss to a $3.1m net profit.
Hedge fund manager Tiger Global Management acquired $18m of Olo shares from unnamed sellers in a secondary deal in 2018. Raine Ventures, the venture capital arm of merchant bank Raine Group, had provided $40m for the company in 2016 to bring its overall disclosed funding to nearly $65m.
Staley Capital led a 2014 round for Olo sized at $10m according to a regulatory filing. It had previously received $5m from PayPal, VC firms Core Capital Partners and RRE Ventures, and David Frankel, the angel investor who seeded the company.
Olo is issuing class A shares in the offering, with its existing shareholders all holding class B stock. Its largest external shareholders are Raine Group, with a 27.5% stake, Tiger Global (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 are lead book-running managers for the IPO while RBC Capital Markets is book-running manager and Piper Sandler, Raine Securities, Stifel Nicolaus, Truist Securities and William Blair co-managers.
