Olo, which makes online ordering software for restaurants, saw its shares rise by up to 24% on its debut in the public market on Wednesday.
The company priced the shares at $ 25 per share, raising about $ 450 million at a valuation of $ 3.6 billion. Olo had initially said his target price was $ 16 to $ 18 per share, before raising it to $ 20 to $ 22 per share on Monday. The shares are being traded on the New York Stock Exchange under the ticker “OLO”.
“For us, we are so well known in the restaurant industry, but so unknown outside of it, certainly by public investors, so it is important to find as many investors as possible,” 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 is in stark contrast to other restaurant technology companies, such as DoorDash, which raised $ 2 billion before going 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 rise in online restaurant orders during the coronavirus pandemic helped Olo make a profit of $ 3.06 million last year, according to regulatory documents. In 2018 and 2019, the company lost money.
In 2020, net sales almost doubled to $ 98.4 million. Olo’s revenue comes from the subscription fees it charges from restaurant chains like Brinker International’s Shake Shack and Chili’s for access to its digital ordering software, as well as transaction fees for delivery orders.