Olo Inc., a food-ordering software company, has raised $450 million in an initial public offering of its Class A common stock.
The New York-based company, whose board members include Shake Shack Inc. founder Danny Meyer, sold 18 million shares for $25 each, a range it had elevated earlier from $16 to $18, according to a reportin Bloomberg.
Goldman Sachs & Co. LLC and J.P. Morgan will be the main underwriters of the offering with support from RBC Capital Markets, Piper Sandler & Co., Stifel, Nicolaus & Company, Incorporated, Truist Securities, Inc., and William Blair & Company, L.L.C., according to a press release. The Raine Group will remain Olo’s biggest shareholder after the listing with 27% of the voting power, according to the filings. In a related FCC story, Olo is hoping to raise as much as $306 million in its IPO.
Olo, was founded in 2005 as a text-message food-ordering service and its name is derived from “online ordering.” The company’s software powers loyalty programs and allows restaurants to manage orders and set customized menus, according to its website.
In 2019, Olo partnered with Uber Technologies Inc. to allow consumers to place Uber Eats orders directly into restaurants’ systems. Olo’s revenue and service surged during the coronavirus pandemic, giving the company a net income of $3 million on $98 million in revenue last year, according to its filings.
Olo’s customers include restaurant chains such as Five Guys Holdings Inc., California Pizza Kitchen Inc. and The Cheesecake Factory Inc.
Olo did not return FastCasual’s request for comment.