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Ibotta sees share price rise 33% in market debut

Ibotta shares rose 33% in their debut on the New York Stock Exchange (NYSE) on Thursday (April 18).

As Axios reported on Thursday, the stock first traded at $117 per share after trading at $88 per share on Wednesday (April 17). The company raised $577.3 million.

Ibotta raised its price to $84 per share on Wednesday from a previous price range of $76.

The company's strong market debut gave the Walmart-backed digital rewards company a market valuation of $2.7 billion, the report said.

The company will use proceeds from its IPO to expand its artificial intelligence (AI)-based technology to give its advertisers more options and help them promote their products digitally, Ibotta CEO Bryan Leach said in a statement on Thursday published report to Reuters.

Ibotta announced on April 8 that it planned to raise $472 million through its initial public offering. On Tuesday (April 16), it increased that figure to around $551 million.

The Company's platform enables businesses to deliver digital promotions to more than 200 million consumers through the Ibotta Performance Network (IPN), a network of publishers that enables marketers to influence consumer shopping habits.

“Unlike other forms of advertising, we engage consumers in the offer, meaning when someone purchases a product in response to a promotion, we pass on a portion of our advertising fee in the form of a reward,” Leach said in a letter accompanying Ibotta’s initial filing with the Securities and Exchange Commission (SEC).

“Because our offers are 100% digital, we can target promotions not only based on what sites they have visited or where or when they have shopped, but also on what specific items they have purchased in the past from a variety of retailers – Store or online. And we can tie anything to a sale,” Leach added.

Ibotta is backed by Walmart and has more than 850 customers, including PepsiCo, Nestle and Coca-Cola. The company's revenue increased 52% year-over-year in 2023 and its net profit margin increased 12%.

The company was valued at $1 billion in a Series D funding round in 2019.

PYMNTS reported on Wednesday that the FinTech IPO Index shows there are signs of a thaw following the FinTech funding winter.

For more information, see: Advertising, Digital Rewards, Ibotta, IPO, IPOs, News, PYMNTS News, Retail, Rewards Programs, Stock Market, Walmart, What's Hot

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