Shares of the New York company were climbing 23.58% to $30.90 at last check Wednesday. The first trade as a public company was $32.
Olo said Tuesday that its offering of 18 million shares was priced at $25 each, above increased expectations, giving the company a market value topping $3.5 billion.
The company had raised the expected price range for the initial public offering to $20 to $22 a share on Monday from an earlier estimate of between $16 and $18.
Olo’s customers include restaurant chains such as Chili’s, Wingstop, Shake Shack, Five Guys and sweetgreen. As of Dec. 31, the company said, roughly 400 brand customers representing more 64,000 active locations are using the platform.
“Restaurant brands rely on Olo to increase their digital and in-store sales, maximize profitability, establish and maintain direct consumer relationships, and collect, protect, and leverage valuable consumer data,” the company said in a regulatory filing.
While many restaurants have been struggling during the COVID-19 pandemic, Olo said in a filing that “we have been uniquely positioned to expand our footprint and help support the restaurant industry when it was most in need.”
“While we expect on-premise dining to return over time, we believe that off-premise offerings will continue to be an essential part of a restaurant’s operations,” the company said.
Olo said a recent survey of its customers found that about 70% of respondents offered more off-premise delivery and pick-up options in response to COVID-19.
Revenue for the quarters ending March, June, September and December 2020 increased by 55.2%, 100.2%, 94.2%, and 117.6%, respectively, from the same periods in 2019, the company said.
Olo was founded in 2005 and its initial product was a mobile phone app that allowed users to pre-order food via text message from coffee shops for pick-up.
In other IPO news, Coinbase Global, the largest U.S. cryptocurrency brokerage, on Wednesday submitted plans to sell 114.9 million shares in a direct-listing initial public offering that could value the company at more than $100 billion.
Last week, Coupang (CPNG) – Get Report, South Korea’s largest e-commerce company, raised $4.6 billion in the biggest initial public offering in the United States this year that priced above its target range.