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Sun Country Airlines raised $ 218 million after selling 9.1 million shares at $ 24 each.
Daniel Slim / AFP via Getty Images
Three companies—
Olo,
Jowell Global,
and
Sun Country Airlines Holdings
– made their debut on the public stock market on Wednesday.
The three are the first traditional initial public offerings of the week.
Sun Country (ticker: SNCY) performed best on Wednesday, with stocks up almost 52%. The stock opened at $ 33 and closed at $ 36.38.
The low-cost airline raised $ 218 million after selling about 9.1 million shares at $ 24 each, over its $ 21 to $ 23 price range.
Barclays,
Morgan Stanley,
and Deutsche Bank Securities are the underwriters of the deal.
Minnesota-based Sun Country offers flights throughout the United States, as well as to Mexico, Central America and the Caribbean. Your charter business is a big component of your business strategy; clients include casino operators, the United States Department of Defense, college sports teams and professional sports teams. The company is also the air carrier for the NCAA Division I National Basketball Tournament, its prospectus said.
Of the three companies traded on Wednesday, only Sun Country is unprofitable. The airline experienced a significant drop in demand last year because of the Covid-19 pandemic.
Olo (OLO) also started trading on Wednesday. The stock opened at $ 32 and jumped 39%, or $ 9.75, to close at $ 34.75.
“This is the manifestation of a remarkable moment [for Olo], ”Noah Glass, its founder and CEO, said Barron’s trading floor of the New York Stock Exchange. “It is incredible now to have the credibility that comes with an IPO and the transparency in our balance sheet and resources that comes with [it]. It feels like the beginning of this journey … I couldn’t be more excited on behalf of the entire Olo team. “
At the end of Tuesday, Olo raised $ 450 million after selling 18 million shares at $ 25 each, above his expected range. The New York-based software company had initially filed for an offer for 18 million shares at $ 16 each, which increased to $ 20 to $ 22 earlier this week.
Goldman Sachs
and
JP Morgan
are the subscribers to the business.
Started in 2005, Olo’s software helps around 400 restaurants to deliver digital orders and deliveries. Customers include Chili’s, Shake Shack (SHAK), Denny’s (DENN) and Cheesecake Factory (CAKE).
Olo raised about $ 100 million in capital and is debt-free, Glass said. The company, which saw its revenue nearly double last year to $ 98.4 million, has more than $ 70 million in cash on its balance sheet, he said.
Olo will use the IPO’s resources to double support for the “corporate restaurants we serve”, which includes about 100,000 individual companies, he said. The segment processes about $ 40 billion in transactions, Glass said. “We are looking at the opportunity to grow and scale. It is a 70-fold opportunity from where we left off last year, ”he said. “The starting capital we raise will help us to deal with the pain points that restaurants feel.”
One thing Olo is unlikely to participate in is mergers. “We have none planned [acquisitions] up your sleeve to be the direct reason for doing that, ”said Glass.
Olo’s software helps restaurants deliver orders and deliveries online. Nearly $ 14.6 billion in sales were processed through Olo’s platform in 2020, but the company is still in the early stages of providing payments, Glass said, noting that only a handful of customers are using OloPay. “We are in the super, super early stages, but we are excited about [OloPay] and invest in it, ”he said.
The Covid-19 pandemic has accelerated acceptance of digital orders, Glass said. The biggest challenge for the industry now is the ever-changing healthcare environment and how much of the dining rooms in restaurants can remain open, he said. “Covid was a devastating thing for the restaurant industry and its owners. We take on a bigger role as a lifeline for our restaurant customers and a mission-critical component of the business, ”he said.
By going public now, Olo is making a statement that he plans to be independent for a long time, he said. Many businesses were built on top of Olo, he said. “We want them to feel good about Olo’s future partner … It’s a great opportunity for our investors who are with us on our 15-year journey,” said Glass.
Finally, Jowell Global (JWEL) made its debut on Wednesday. The stock opened at $ 8.60 and closed at $ 8.71, up 24.43%.
The Shanghai company raised $ 26 million after selling 3,714,286 million shares at $ 7 each. Network 1 Financial Securities is the insurer for the business.
Jowell provides an e-commerce platform that sells cosmetics, nutritional and health supplements and household products in China. It also sells its products through authorized retail stores under the Love Home Store or LHH Store brand.
Write to Luisa Beltran at [email protected]