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Ncino headquarters.
Courtesy of nCino.
NCino, which provides cloud-based software for financial institutions, experienced more than a 150% increase in its shares on its first day of trading.
NCino shares opened at $ 71 and were trading at $ 77.20, a 150% increase in the Nasdaq stock market at noon. With approximately 89.2 million shares outstanding, nCino now has a market capitalization of $ 6.9 billion.
The strong first day comes after nCino raised $ 248 million, more than expected, in its initial public offering. The Wilmington, North Carolina fintech sold 8.06 million shares at $ 31 each Monday night. That’s more than the 7.625 million shares at $ 22 to $ 24 each that nCino initially planned to offer.
The company increased its price range from $ 28 to $ 29, according to a July 10 filing with the Securities and Exchange Commission. BofA Valores, Barclays,
Keybanc Capital Markets and SunTrust Robinson Humphrey are underwriters of the deal, according to the document.
NCino is the last company to post a strong first day. Lemonade, an insurance technology company, saw its shares more than double earlier this month in its market debut.
Bankers and entrepreneurs started nCino in 2011 because they found the business loan process to be “inefficient and slow,” says the nCino website.
The nCino operating system provides a single platform for onboarding, loan origination, and account opening for more than 1,100 financial institutions, including banks and credit unions. Clients currently include Bank of America (ticker: BAC), Barclays (BCS), Santander (SAN), and TD Bank (TD). NCino employs 934 people in seven offices.
Pierre Naude, CEO of nCino, said the IPO was a milestone for the company.
“Now more than ever, financial institutions are beginning to understand the imperative of digital transformation, creating a compelling market opportunity for nCino,” Naude said in a statement. “Entering the public market is an opportunity that can enable our company to invest responsibly in growth and strengthen our ability to remain focused on our core mission and vision: to transform the global financial services industry through innovation, reputation and speed. “
Covid-19, nCino said, continues to create uncertainty in global financial markets, which could affect technology spending. However, the company also said it had adapted its Small Business Administration loan solution to the Paycheck Protection Program, which provides loans to struggling companies.
NCino’s bank customers have processed “hundreds of thousands of requests” and provided more than $ 50 billion in PPP funds using their software, according to the regulatory filing.
Fintech plans to use the proceeds of the offering for general corporate purposes, including working capital, as well as to add offices. NCino can also use a part to “acquire, invest or obtain” complementary technologies, products, services or businesses, he said.
NCino is not profitable. Net losses expanded to $ 4.8 million in $ 44.7 million in revenue for the quarter ended April 30, compared to $ 3.4 million in net losses and $ 29.8 million in revenue for the same period in 2019.
Insight Partners has the largest stake in nCino and was online to own 42.6% after the IPO. Salesforce.com (CRM) has 12.1%, while Wellington Management will have 8.6%.
Insight, Salesforce and Wellington executives could not be reached for comment.
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