Ibotta (IBTA) priced its IPO at $88.00 – $4.00 above its $76.00-to-$84.00 range – on Wednesday night (April 17, 2024) on 6.56 million shares – the number of shares in the recently upsized deal’s prospectus. Ibotta’s IPO raised $577.28 million. That price – $88.00 – confirmed the red-hot buzz swirling around the Denver-based digital ad platform’s IPO this week. (Editors’ Note: This column was updated early Thursday afternoon (April 18, 2024) to include the NYSE debut of Ibotta’s stock. The column was initially published Wednesday night (April 17, 2024).)
Goldman Sachs, Citigroup, BofA Securities, Evercore ISI, UBS Investment Bank and Wells Fargo Securities were the joint book-runners.
Ibotta’s stock skyrocketed to open at $117.00 in its New York Stock Exchange debut early Thursday afternoon (April 18, 2024). By about 2 p.m. EDT, Ibotta had cooled off a little – trading at $99.99, up 13.63 percent from its IPO price of $88.00, on volume of about 2.71 million shares.
Allocations were expected to be minuscule – except for institutional investors ranked among the top accounts at Goldman Sachs.
Ibotta says it makes money only when a customer’s product promotion results in a sale.
Walmart, Family Dollar (a Dollar Tree subsidiary), Kroger and Shell are among Ibotta’s clients, the prospectus says.
“We work directly with over 850 different clients, representing over 2,400 different CPG brands to source exclusive offers as of Dec. 31, 2023,” Ibotta says in the prospectus. “Most of our offers cover products in non-discretionary categories, such as grocery, but we also work with general merchandise manufacturers in categories such as toys, clothing, beauty, electronics, pet, home goods, and sporting goods. Over time, our clients have generally ramped up their spend with us, and they rarely drop off our network. In fact, of our top 100 clients, 96 percent were retained from 2022 to 2023.”
Ibotta says its technology platform “uses an Artificial Intelligence (AI)-enabled offer engine that is designed to match and distribute the right offer to the right consumer at the right time.”
For the year ended Dec. 31, 2023, Ibotta swung to a profit from a year-earlier loss, according to the prospectus.
Ibotta earned net income of $38.1 million on revenue of $320.0 million for 2023, the prospectus shows.
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