Restaurant tech firm Olo shares soar more than 20% in IPO as online ordering surges

Olo, which makes on-line ordering utility for restaurants, noticed shares flit as great as 24% in its public market debut on Wednesday.

The company priced shares at $25 per fragment, raising about $450 million at a valuation of $3.6 billion. Olo had before the total lot acknowledged that its aim mark became once $16 to $18 per fragment, before raising it to $20 to $22 per fragment on Monday. The inventory is trading on the Original York Stock Change below the ticker “OLO.”

“For us, we’re so successfully identified at some stage within the restaurant alternate but so unknown exterior the restaurant alternate, unquestionably by public investors, so it be significant for us to meet with as many investors as we’d,” CEO Noah Glass acknowledged in an interview.

Earlier than the initial public offering, Olo had raised decrease than $100 million in funding from exterior investors since the corporate became once founded in 2005. That stands in stark difference to diversified restaurant tech companies, worship DoorDash, which raised $2 billion before it went public in December.

Glass acknowledged that the greater profile of being publicly listed would possibly well wait on Olo grow beyond righteous chain restaurants into working with smaller eateries and even working with grocery or consolation retail outlets.

The surge in on-line restaurant ordering at some stage within the coronavirus pandemic helped Olo turn a income of $3.06 million final 365 days, in step with regulatory filings. In 2018 and 2019, the corporate misplaced money.

In 2020, accumulate gross sales nearly doubled to $98.4 million. Olo’s income comes from the subscription charges it charges restaurant chains worship Shake Shack and Brinker International’s Chili’s for entry to its digital ordering utility, as successfully as transaction charges for shipping orders.