An preliminary public providing by Ibotta, a digital promotions firm whose backers embody Walmart, might greater than double the agency’s valuation in contrast with the place it stood after a 2019 funding spherical.
Ibotta initially filed with the Securities and Trade Fee on March 22, proper after the profitable IPOs of the Astera Labs and Reddit, however it wasn’t till Monday that the agency offered particulars. The amended S-1 reveals it should launch greater than 5.6 million shares that vary from $76 to $84. Most of these will probably be coming from present stockholders, with solely 2.5 million a part of Ibotta’s providing.
These roughly 5.6 million symbolize virtually 21% of all shares. With 27,221,509 excellent, pricing on the top quality would put Ibotta’s valuation round $2.28 billion, that means the IPO might generate as a lot as $472.5 million.
Whereas Walmart holds 2.7 million shares, the most important enterprise associate is Koch Disruptive Technologies, the funding arm of Koch holdings, with round 4.8 million. KDT led Ibotta’s 2019 collection D funding round, which on the time valued the corporate round $1 billion.
In the case of who controls Ibotta, two of the three main VCs—Walmart and Clark Jermoluk Founders Fund—mentioned they aren’t promoting any shares, and Koch Industries is simply giving up just below 5% of its present 20% voting rights. Leach is placing up simply 531,000 of his 4.26 million shares and can retain virtually 70% management.
The Denver-based firm, which is able to commerce on the NYSE underneath IBTA, achieved profitability final yr whereas producing $320 million in income. In a letter accompanying the submitting, CEO Bryan Leach famous how Ibotta started simply 12 years in the past “in the windowless basement of an old fire station in downtown Denver.”
“Our capital-light business has allowed us to grow rapidly while increasing profitability over time and capturing the benefits of a multi-sided network,” he added.
Ibotta’s platform lets shopper manufacturers market promotions and rebates. Among the many 2,400 brands that use Ibotta are Coca-Cola and Pepsi, Campbell Soup, Kraft Heinz, and General Mills. In 2021, the corporate entered right into a partnership with Walmart to showcase its digital promotions.
“The fact that [Ibotta] has become, with Walmart, more of an enterprise software play, basically being the back-end for its Walmart cash rewards program, that lends more credence to it,” Nicholas Smith, an analyst with Renaissance Capital, which offers pre-IPO analysis and manages two IPO-focused ETFs, recently told TechCrunch.
