Olo, which makes online ordering programs for restaurants, raised shares to 24% in its debut on the public market on Wednesday.
The company cost shares at $ 25 per share, raising about $ 450 million at a valuation of $ 3.6 billion. Olo initially said its target price was $ 16 to $ 18 per share, before raising it to $ 20 to $ 22 per share on Monday. The stock trades on the New York Stock Exchange under the ticker “OLO.”
“For us, we are so well known within the restaurant industry, but so unknown outside the restaurant industry, certainly by public investors, which is why it is important for us to meet with as many investors as we could,” said CEO Noah Glass. said an interview.
Prior to the initial public offering, Olo had raised less than $ 100 million in financing from outside investors since its inception in 2005. This is in stark contrast to other restaurant technology companies, such as DoorDash, which raised $ 2 billion before it became known in December. .
Glass said the higher profile of public listing could help Olo grow further than large chain restaurants to work with smaller eateries or even with grocery or convenience stores.
The surge in online restaurant orders during the coronavirus pandemic helped Olo make a profit of $ 3.06 million last year, according to regulators. 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 that restaurant chains like Brakeer International’s Shake Shack and Chili’s charge for access to digital ordering software, as well as transaction fees for delivery orders.