Olo, which makes online ordering software for restaurants, saw shares jump a whopping 24% on Wednesday during its public market debut.
The company was priced at $ 25 per share and raised approximately $ 450 million at a valuation of $ 3.6 billion. Olo had initially said the target price was $ 16 to $ 18 a share, before hitting $ 20 to $ 22 a share this Monday. The stock is traded on the New York Stock Exchange under the ticker “OLO”.
“To us, we are so well known within the restaurant industry, but so unknown outside the restaurant industry, especially among public investors, so it’s important for us to meet as many investors as possible,” CEO Noah Glass said in an interview.
Before the IPO, Olo had raised less than $ 100 million in funding from outside investors since its inception in 2005. That’s 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 a public listing could help Olo grow beyond major restaurant chains to work with smaller eateries or even partner with supermarkets 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 the registration files. In 2018 and 2019, the company lost money.
In 2020, net sales nearly doubled to $ 98.4 million. Olo’s revenue comes from the subscription fees that restaurant chains such as Shake Shack and Brinker International’s Chili’s charge for access to its digital ordering software, as well as transaction fees for delivery orders.