AvidXchange IPO Raises About $660M on Initial Market Cap of $4.8B

Accounts payable (AP) and payment automation platform AvidXchange Holdings, Inc. on Wednesday (Oct. 13) announced that its initial public offering (IPO) will feature 26.4 million shares of common stock for $25 each.

AvidXchange has also given its underwriters 30 days to buy an additional 3.96 million common stock shares at the IPO price. The IPO is expected to raise about $660M with an initial market cap of nearly $4.8B.

The company plans to use the proceeds to expand its employee base, invest in sales and marketing, product development and working capital.

AvidXchange’s common stock will trade on the Nasdaq Global Select Market starting Wednesday under the symbol AVDX and is expected to close on or about Friday (Oct. 15), subject to the satisfaction of customary closing conditions.

Goldman Sachs & Co. LLC and J.P. Morgan are the joint lead book-running managers for AvidXchange’s IPO. BofA Securities, Barclays, Credit Suisse, KeyBanc Capital Markets, Deutsche Bank Securities and Piper Sandler are acting as book-running managers. Wolfe | Nomura Strategic Alliance and Fifth Third Securities are co-managers in the IPO.

Related news: AvidXchange to Buy FastPay for Media Industry Payments

In July, AvidXchange partnered with payments automation firm FastPay to advance services to middle-market media companies. FastPay specializes in payment automation solutions for the media industry. Terms of the deal were not disclosed.

Michael Praeger, CEO and co-founder of AvidXchange, said AvidXchange looks to collaborate with companies “that service specific verticals across the middle market,” particularly firms that have continually worked to advance technologies that “better the day-to-day finance operations of its customers.”

The deal brought AvidXchange’s automated payments technologies and services to the media space in the U.S.; the companies will work to advance inefficient payment processes across the sector by brands, agencies and media suppliers.

AvidXchange was launched in 2000 in Charlotte, North Carolina with the goal of streamlining AP processes and advancing automation. The company works with over 7,000 businesses in North America and counts more than 700,000 firms as part of its network, processing in excess of $145 billion in transactions every year.