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Highlights
- AVDX IPO could gain investors’ attention amid the rise of financial technology companies since the coronavirus pandemic began in 2020.
- The leading underwriters for AVDX IPO would be BofA Securities, Barclays, J.P. Morgan and Goldman Sachs & Co.
- Peter Thiel-backed AvidXchange had raised US$ 2 billion in a funding round in April 2020.
AvidXchange Holdings Inc has filed to go public in the US equities market and is hoping to raise US$ 506 million in gross proceeds. The business payments firm could be valued at around US$ 4.4 billion if the company successfully lists its shares in stock markets.
The North Carolina-based company had reportedly raised US$ 2 billion in a funding round in April 2020 and is backed by billionaire Peter Thiel. AvidXchange was preparing for the initial public offering (IPO) since March this year and was in touch with investments banks to advise on the IPO.
The COVID-19 pandemic pushed the world to adopt digital solutions that led to financial technology (fintech) firms, facilitating payments for businesses, experience high success.
Notably, AvidXchange is involved in making software for the automation of payments, accounting, and invoicing of small and mid-sized businesses.
Also Read: Nuvei IPO: How to buy the Canadian fintech stock as it plans US debut?
All you need to know about AVDX IPO
As the IPO frenzy continues across the globe, AvidXchange is looking to become a publicly traded company. The firm is likely to use the gross proceeds from the public listing to expand its business operations.
The fintech company wants to list its shares on the Nasdaq Stock Market and has kept the price range of the common shares between US$ 21 to US$ 23 per share. The leading underwriters for AvidXchange's IPO would be BofA Securities, Barclays, J.P. Morgan and Goldman Sachs & Co.
If and when the IPO happens, AvidXchange shares would trade under the stock symbol 'AVDX'.
Should you invest in AVDX IPO?
As per AxidXchange, more than 700,000 suppliers have used the AvidPay Network over the last five years. In addition, the business payments firm processed 58 million transactions in the last 12 months, as of Q2 FY21.
The company claims that over 7,000 companies in North America use AvidXchange's services to increase efficiency, cut costs and improved visibility.
The IPO date is not out yet but it seems that once finalized, retail investors could get an option of buying the pre-IPO shares of AvidXchange. Interested investors can try to buy them through a stockbroker or a trading platform of a brokerage company.
© 2021 Kalkine Media Inc.
Also Read: Propel Holdings IPO: How to buy this Canadian fintech firm's stock?
Bottom line
AvidXchange is growing rapidly and according to the prospectus filed with the US Securities and Exchange Commission, the financial performance of the company is on an upward trajectory.
For the fiscal year 2020, AvidXchange’s software revenue increased to US$ 68.1 million from US$ 50.1 million in 2019. In addition, the GAAP gross profit catapulted to US$ 85.4 million in 2020, up from US$ 62.6 million in 2019.
