Walmart-backed marketing firm Ibotta and its shareholders have raised approximately $577.3 million in an initial public offering, pricing the IPO above the estimated range. This was accomplished by selling 6.56 million shares at $88 each, exceeding the expected price range of $76 to $84. As a result, Ibotta is estimated to have a market value of $2.67 billion, based on SEC filings and the terms of the deal. The size of the offering was increased from around 5.6 million to 6.5 million shares, as reported in an SEC filing.
Over 4 million shares in the IPO were set aside for sale by existing shareholders, including Ibotta’s CEO Bryan Leach and a division of Koch Industries, while Walmart has the option to purchase more than 3.5 million shares. This arrangement would give Koch about 15% ownership of Ibotta’s Class A shares, and Walmart would have access to at least 8.2% of the company’s Class A stock. The company, which offers cashback opportunities to users for both digital and in-person shopping, announced its proposed IPO earlier this month. Ibotta was previously valued at $1 billion in a 2019 series D funding round led by Koch.
Ibotta is expected to begin trading publicly on the New York Stock Exchange on Thursday under the ticker symbol IBTA. The company, known for producing digital promotions and marketing solutions, is entering the IPO at a time when the market is heating up for such offerings. The successful pricing of the IPO above the estimated range indicates strong investor interest in Ibotta and bodes well for its future performance in the public markets. With the increased size of the offering and the participation of key shareholders like Koch and Walmart, Ibotta is poised for a significant debut on the stock exchange.
The funds raised through the IPO will provide Ibotta with additional capital to support its growth and expansion plans. As a player in the digital marketing industry, the company will likely use the proceeds to further develop its cashback platform, enhance marketing strategies, and pursue potential acquisitions to strengthen its market position. Investors will be watching closely to see how Ibotta performs in the coming months as a publicly traded company and how it navigates the competitive landscape of the digital marketing sector. The successful pricing of the IPO and the strong investor interest indicate optimism about Ibotta’s prospects and potential for growth in the market.
