Walmart-backed Ibotta surges after above-range IPO pricing

Ibotta

18/04/2024 17:53

** Shares of Ibotta Inc  IBTA.N , customer rewards app and
digital promotions firm, surge in NYSE debut on Thurs after IPO
exceeds expectations
    ** IBTA opens at $117 vs $88 IPO price and last up 24% at
$109
    ** IPO of 6.6 mln shares late Weds priced well above
marketed range of $76-$84 for $577.3 mln total raise
    ** Deal size boosted from 5.65 mln shares earlier this week
    ** Ibotta sold 2.5 mln shares in the IPO, while existing
holders, including CEO Bryan Leach and unit of Koch Industries,
sold the balance
    ** Walmart  WMT.N  owns about 8.3% stake, roughly 2.7 mln
shares, and did not sell in the offering
    ** As part of strategic relationship forged in 2021, Ibotta
became Walmart's exclusive provider of digital item-level rebate
offers and issued stock purchase warrants to the retailer
    ** Last year, Ibotta generated net profit of $38 mln vs $55
mln loss in 2022. For Q1 2024, it expects net profit of
$7.3-$9.3 mln vs $4.3 mln loss a yr-ago on rev of $80.8-$82.3
mln, at least a 40% yr/yr increase
    ** Goldman, Citi and BofA are jt lead bookrunners for the
IPO

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))