Mastercard-backed AvidXchange valued at $4.6 bln in tepid Nasdaq debut (updated)

AvidXchange Holdings

13/10/2021 17:23

(Adds details about the IPO)
    Oct 13 (Reuters) - AvidXchange Inc  AVDX.O  opened around
3.4% below its initial public offering (IPO) price in its Nasdaq
debut on Wednesday, giving the U.S. business payments firm a
market capitalization of roughly $4.62 billion.
    Shares of the company, which counts Mastercard Inc  MA.N 
among its investors, opened at $24.14, compared with the IPO
price of $25 per share. 
    AvidXchange, which makes software that automates payments,
invoicing, and accounting for small and mid-sized businesses,
had raised $660 million in its upsized IPO on Tuesday by selling
26.4 million shares. 
    The Charlotte, North Carolina-based firm had earlier
targeted an IPO price range of $21 to $23, before hiking it to
$23 and $25 per share last week.
    Financial technology firms that facilitate payments for
businesses have been highly successful over the past year, as
the COVID-19 pandemic accelerated digital transition across
industries. 
    Goldman Sachs and J.P.Morgan were the lead underwriters for
the offering. 

 (Reporting by Sohini Podder in Bengaluru; editing by
Uttaresh.V)
 ((Sohini.Podder@thomsonreuters.com;))