Ibotta, the digital marketing company backed by Walmart, ended up raising $577.3 million, after its IPO priced $4 above its target price range.
Ibotta on Wednesday sold about 6.6 million shares at $88 each, a person familiar with the situation said. The Denver-based company had planned to sell roughly 6.6 million shares at $76 to $84 each. Goldman Sachs, Citigroup and BofA Securities as lead underwriters on the deal.
On Tuesday, Ibotta boosted the size of its IPO to about 6.6 million shares from around 5.6 million shares, typically a sign of investor demand. At $88 a share, Ibotta’s valuation is $2.67 billion. It will trade Thursday on the New York Stock Exchange under the ticker IBTA.
The listing comes at a time when the broader IPO market is heating up. In addition to Ibotta, Century Holdings, a supplier of products for the construction industry, is expected to price Wednesday and trade Thursday, according to IPOScoop.com. Rubrik, the data security company backed by Microsoft, is also slated to go public next week.
Last month, Reddit raised $748 million in a much anticipated offering. Shares of Reddit soared 48% in its first day of trading and then hit a high of $74.90 in the aftermarket last month. The stock has since lost much of those gains, closing Tuesday at $39.15. Astera Labs also listed in March, collecting $713 million. Astera popped 72% during its debut with the stock rising to a high of $95.21 in the following weeks, though shares have since lost momentum, closing Tuesday at $73.21.
Founded in 2011, Ibotta is a cash back rewards platform that was valued at $1 billion in 2019. Over 2,400 brands use Ibotta, including Coca-Cola and Pepsi, Campbell Soup, Kraft Heinz, and General Mills. In 2021, the company entered into a partnership with Walmart to showcase its digital promotions on the retailer’s platforms.
Ibotta posted three quarters of profitability in 2023. The company reported $18.6 million in income for the three months ended Dec. 31 compared to $5.1 million in losses for the same time period in 2022. Revenue rose 50% to $99.6 million for the December quarter.
Bryan Leach, Ibotta’s founder, CEO and president, will remain in control; he will have 71.33% of voting power after the IPO. (Leach is selling just 531,000 shares). Walmart is not selling stock but will have 2.83% voting power after the IPO. Koch Disruptive Technologies, the investment arm of Koch holdings, is offering 1.5 million shares and will have 4.85% voting power after the IPO. (Koch, which led Ibotta’s 2019 series D funding round, could make $126 million if Ibotta prices at $84.) Clark Jermoluk Founders Fund, an early stage VC, is also not selling and will have 6.21% of outstanding stock.
News of the pricing was first reported by Bloomberg.
