Olo, which makes online ordering software for restaurants, saw shares soar up 24% in its public market debut on Wednesday.
The company traded shares at $ 25 per share, reaching approximately $ 450 million at a valuation of $ 3.6 billion. Olo had initially said its target price was $ 16 to $ 18 per share, before raising it to $ 20 to $ 22 per share on Monday. The shares are listed on the New York Stock Exchange under the ticker “OLO”.
“For us, we are as well known within the catering industry, but so unknown outside the catering industry, certainly by public investors, so it’s important that we meet with as many investors as we can,” he said. CEO Noah Glass in an interview.
Prior to the initial public offering, Olo had raised less than $ 100 million in financing from outside investors since the company was founded in 2005. This contrasts with other restaurant technology companies, such as DoorDash, which raised $ 2,000. millions of dollars before being made public in December.
Glass said the higher profile of being publicly listed could help Olo grow beyond large restaurant chains to work with smaller restaurants or even work with supermarkets or convenience stores.
The increase in online restaurant orders during the coronavirus pandemic helped Olo make a profit of $ 3.06 million last year, according to regulatory statements. In 2018 and 2019, the company lost money.
In 2020, net sales nearly doubled to $ 98.4 million. Olo’s revenue comes from subscription fees charged by restaurant chains such as Shake Shack and Chink’s from Brinker International for access to their digital ordering software, as well as transaction fees for delivery orders.