June 20, 2024


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AvidXchange IPO Getting High Investor Interest

AvidXchange (AVDX) plans to raise $528 million with an initial public offering. It’s drawing high interest from investors for the provider of billing and payments software. The AvidXchange IPO will trade Wednesday.


The company expects to sell 22 million shares priced between $23 and $25 each. Earlier it had set a range of $21 to $23 per share, indicating high demand among large investors. That would give it a market value of nearly $5 billion.

Comparisons to AvidXchange include Bill.com (BILL).

Using a software-as-a-service business model, AvidXchange provides accounts payable automation software and payment solutions for middle-market businesses and their suppliers. More than 7,000 businesses use the software.

AvidXchange defines the middle market primarily as companies with between $5 million and $1 billion in annual revenue.

AvidXchange IPO Filing

“The majority of businesses continue to operate paper-intensive back offices, particularly in their accounts payable workflows,” says the AvidXchange IPO filing.

“While solutions have been developed to address this friction, they are predominantly suited for larger enterprises and small- to medium-size businesses,” it said. “The middle market, however, remains underserved.”

The company generates revenue from a mix of billing and subscription product sales.

For the six-month period ended June 30, AvidXchange reported revenue of $114 million, up 33% from the year-ago period. It reported a net loss of $50.6 million, compared with a loss of $92 million in the year-ago period.

The AvidXchange IPO will list on the Nasdaq under the ticker AVDX. In addition, the lead underwriters are Goldman Sachs and JPMorgan

IPO Record Will Be Smashed

The record for initial public offerings in one year will be smashed in 2021 as IPO stocks keep making headlines. Likely IPO candidates in the fourth quarter include electric-vehicle maker Rivian, mobile payment company Stripe and grocery delivery company Instacart. Also, Indian online retailer Flipkart and semiconductor company GlobalFoundries.

Recent IPO stocks are where you often find some of the market’s best stocks. New IPOs are typically in their early stages of growth. Big earnings growth potential is generally what fuels an IPO stock’s price performance. IBD’s IPO Leaders section has special screening criteria to find up-and-coming stocks with strong fundamental and technical traits.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.


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