Food-Ordering Software Maker Olo Tops Goal With $450 Million IPO
(Bloomberg) -- Olo Inc., the food-ordering software company whose board members include Shake Shack Inc. founder Danny Meyer, raised $450 million in an initial public offering priced above a marketed range.
The New York-based company sold 18 million shares for $25 each on Tuesday, according to a statement. Olo had marketed the shares for $20 to $22, a range it had earlier elevated from $16 to $18.
Olo, whose name is derived from “online ordering,” has a market value in the listing of $3.55 billion based on the outstanding shares listed in its filings.
The company’s software powers loyalty programs and allows restaurants to manage orders and set customized menus, according to its website. Olo partnered with Uber Technologies Inc. in 2019 to allow consumers to place Uber Eats orders directly into restaurants’ systems, according to an earlier statement.
Olo’s customers include restaurant chains such as Five Guys Holdings Inc., California Pizza Kitchen Inc. and The Cheesecake Factory Inc.
Like other businesses with a hand in food delivery, Olo surged during the coronavirus pandemic. After losing $8.3 million on $51 million in revenue in 2019, Olo had net income of $3 million on $98 million in revenue last year, according to its filings.
Olo was founded in 2005 as a text-message food-ordering service. It received a $40 million investment from the Raine Group in 2016 and $18 million from Tiger Global Management in 2019, according to company statements. Raine Group will remain Olo’s biggest shareholder after the listing and will have 27% of the voting power, according to the filings.
Meyer, chief executive officer of Union Square Hospitality Group, owns about 1.1% of Olo’s Class B shares, the filings show.
Olo’s offering is being led by Goldman Sachs Group Inc., JPMorgan Chase & Co. and Royal Bank of Canada. The shares are expected to begin trading Wednesday on the New York Stock Exchange under the symbol OLO.
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