“Ibotta Soars in IPO, Garnering $3.6 Billion Valuation”

How Ibotta Shares Skyrocketed to a $3.6 Billion Valuation | The Enterprise World

(Source – TechCrunch)

Ibotta shares, a company specializing in facilitating mobile promotions through rewards and rebates for brands, closed trading on Thursday at $103.25 each, marking an impressive surge of up to 34% earlier in the day. With Walmart Inc. among its backers, Ibotta shares performance propelled its market value to $3.13 billion, based on outstanding shares, while its fully diluted value, inclusive of stock options and restricted share units, soared closer to $3.6 billion.

The successful trading session comes on the heels of Ibotta and its shareholders selling 6.56 million shares at $88 each on Wednesday. Initially marketed at a range of $76 to $84 per share, Ibotta increased the size of the offering on Tuesday from approximately 5.6 million shares, as indicated by its filings with the US Securities and Exchange Commission.

“Backed by Walmart Inc., Ibotta Expands Market Reach Amidst Rising Demand”

The IPO witnessed over 4 million shares being sold by existing shareholders, including Chief Executive Officer Bryan Leach and a subsidiary of Koch Industries Inc., alongside 2.5 million newly issued shares from the company itself.

Amidst a revitalized IPO market, Ibotta’s listing adds to the momentum, contributing to a total of over $12 billion raised via IPOs on US exchanges thus far in the year. This surge contrasts sharply with the $3.9 billion raised by this point in 2023, underscoring a burgeoning revival in public offerings following a two-year lull post the record-high levels witnessed in 2021.

In addition to Ibotta’s stellar performance, Centuri Holdings Inc., an infrastructure services firm spun out of Southwest Gas Holdings Inc., also experienced a notable rise in its trading debut on Thursday, with its stock climbing by 10%. Centuri successfully raised $314.8 million in its IPO, further indicating positive market sentiment towards newly listed companies.

Ibotta boasts a robust client portfolio, servicing over 2,400 brands including industry giants such as Coca-Cola, Whirlpool, and Hallmark. Its filings reveal a commendable financial performance, with net income reaching $38 million on revenue of $320 million in the past year, compared to a net loss of $55 million on revenue of $211 million in the preceding year.

“Denver-based Company Surpasses Expectations with Strong Market Debut”

Koch Disruptive Technologies led a series D funding round in 2019, valuing Ibotta at $1 billion. Koch remains a significant investor, retaining approximately 15% of the company’s Class A shares in the IPO. Notable Capital managing partner Hans Tung attributes his firm’s early investment in Ibotta to the company’s innovative approach in capitalizing on the vast market opportunity, particularly targeting Americans living paycheck to paycheck.

With Walmart among its strategic partners, Ibotta has effectively reduced customer acquisition costs by leveraging partnerships that facilitate shared marketing expenses. Additionally, Ibotta’s personalized deals have resonated well with its customer base, further enhancing its market reach and customer engagement.

Founder and CEO Bryan Leach retains majority control of Ibotta, owning all of the company’s Class B shares and possessing 71% of the voting power following the IPO. The IPO, led by Goldman Sachs Group Inc., Citigroup Inc., and Bank of America Corp., saw Ibotta shares commence trading on the New York Stock Exchange under the symbol IBTA, reflecting a promising future amidst strong market demand and strategic partnerships.

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