Mastercard-Backed AvidXchange Upsizes IPO to Raise $660 Million
Mastercard-Backed AvidXchange Upsizes IPO to Raise $660 Million
(Bloomberg) -- Financial technology company AvidXchange Holdings Inc. raised $660 million in an initial public offering, pricing its shares at the top of a marketed range, according to data compiled by Bloomberg.
The company, whose backers include a Mastercard Inc. affiliate and venture capitalist Peter Thiel, sold 26.4 million shares Tuesday for $25 each after marketing 22 million of them for $23 to $25, the data show.
At the IPO price, AvidXchange would have a market value of about $4.9 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission. Accounting for employee stock options and restricted stock units, the Charlotte, North Carolina-based company would have a fully diluted value closer to $5.1 billion.
That compares with a valuation of about $2 billion in a funding round led by TPG Sixth Street Partners in January 2020. The company’s largest backer is Bain Capital Ventures, which will control more than 12% of the shares after the offering.
Mastercard Stake
AvidXchange Chief Executive Officer Michael Praeger, with almost 7.4% of the stock, will control the second-biggest block of shares. Mastercard Venture Holdings Inc., the venture arm of the credit card company, will have the next-largest stake with 6.5%. Thiel invested in the company in 2017 according to data provider PitchBook but isn’t listed in its SEC filings among shareholders with a 5% stake or greater.
The company’s software, designed for small and midsize businesses, provides a platform for accounts payable and related functions.
AvidXchange’s revenue and losses have climbed from last year. It had a net loss of $92 million on revenue of $114 million for the six months ended June 30, compared with a loss of $51 million on revenue of $85 million a year earlier, according to the filing
The offering is being led by Goldman Sachs Group Inc. and JPMorgan Chase & Co. The company plans for its shares to begin trading Wednesday on the the Nasdaq Global Select Market under the symbol AVDX.
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