Olo , an online ordering technology platform for restaurants, priced itsIPO at $25 per share on Tuesday.- Olo will be valued at nearly $4 billion when its shares begins
trading on Wednesday. - The company counts restaurants like Shake Shack, Five Guys, and Sweetgreen as its customers.
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Olo priced its IPO late Tuesday at $25 per share, valuing the restaurant technology platform at nearly $4 billion.
The company offers an online ordering technology platform for restaurants that enables easy online ordering for either pick up or delivery. Olo counts popular restaurants like Shake Shack, Five Guys, and Sweetgreen as its customers.
The technology firm originally priced its IPO at $16-$18 per share, but demand for the stock helped boost its offering price range to $20-$22 per share on Monday, before ultimately settling at $25 per share. Olo is offering 18 million shares and will raise nearly $500 million in proceeds from the offering.
Olo was founded in 2005 and saw its business boom in 2020 amid the COVID-19 pandemic, as more consumers transitioned to take-out and delivery from their favorite restaurants. The company saw its revenue surge 94% in 2020 to nearly $100 million, according to its S-1 filing with the SEC.
"As consumers have become accustomed to the immediate convenience of on-demand commerce, they are demanding the same digital experience from restaurants, placing significant pressure on restaurants to deploy solutions," Olo said in its filing, adding, "This demand has only accelerated since the onset of COVID-19, as on-demand commerce has become a necessity for the majority of restaurants."
Olo is a rare IPO in that it is profitable, as most high-flying technology startups that have gone public in recent months are still years away from profitability. Olo recorded net income of $3.1 million in 2020, an improvement from its net loss of $8.3 million in 2019.
More than 64,000 restaurant locations and 400 brands utilize Olo's technology platform, with 1.8 million orders per day being placed, according to the company.
The company will trade on the New York Stock Exchange under the ticker symbol "OLO."