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March 17, 2021

Food delivery company Olo raises $450m through IPO

Olo, a New York-based food-ordering software company, has raised $450m through an initial public offering.

Olo, a New York-based food-ordering software company, has raised $450m through an initial public offering.

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Meet emerging digital demand in the foodservice industry

Global digital pressures are making waves across sectors. The foodservice industry is seeing particular impact as consumers change the way they operate. It is therefore essential to know how to navigate the challenges that digital is presenting to the industry and its consumers. GlobalData’s free report explores the market outlook for the global foodservice industry, with insights into how foodservice operators, brands, and their suppliers can meet changing demands. Key features in this report include:
  • An overview of dine-in, takeaway, and delivery forecasts up to 2026
  • Areas foodservice industry players should be focusing on for digital investment
  • Consumer insight into attitudes towards digital convenience
  • Challenges facing foodservice, in terms of investment and logical considerations
  • Key examples of top industry players
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It sold 18 million shares for $25 each on 16 March, reported Bloomberg.

The firm had sold the shares for $20 to $22. They were earlier priced between $16 and $18.

Based on the outstanding shares listed in its filings, the food ordering firm has a market value of $3.55bn.

According to the website of Olo, a name derived from online ordering, its software-as-a-service platform powers digital ordering and delivery programmes for restaurant brands.

Besides providing loyalty programmes, its platform enables restaurants to manage orders, provide customised menus, and boost customer relations.

In 2019, Olo teamed up with Uber Technologies to enable people to place Uber Eats orders directly into the systems of restaurants.

Among Olo’s customers include restaurant chains California Pizza Kitchen, and Five Guys Holdings.

During the Covid-19 pandemic, Olo’s food delivery business witnessed a surge as people preferred to order online in the wake of lockdowns and movement restrictions. In 2019, it lost $8.3m on $51m revenue, but it posted a net income of $3m on $98m revenue in 2020.

Shake Shack founder Danny Meyer owns about 1.1% of Class B shares of Olo.

Goldman Sachs & Co. and J.P. Morgan are acting as lead book-running managers for the offering, with RBC Capital Markets as book-running manager, and Piper Sandler & Co, Stifel, Nicolaus & Company,  Truist Securities, and William Blair & Company as co-managers for the offering.

The shares are expected to commence trading today on the New York Stock Exchange.

The offering is expected to close on 19 March, subject to customary closing conditions.

Free Report
img

Meet emerging digital demand in the foodservice industry

Global digital pressures are making waves across sectors. The foodservice industry is seeing particular impact as consumers change the way they operate. It is therefore essential to know how to navigate the challenges that digital is presenting to the industry and its consumers. GlobalData’s free report explores the market outlook for the global foodservice industry, with insights into how foodservice operators, brands, and their suppliers can meet changing demands. Key features in this report include:
  • An overview of dine-in, takeaway, and delivery forecasts up to 2026
  • Areas foodservice industry players should be focusing on for digital investment
  • Consumer insight into attitudes towards digital convenience
  • Challenges facing foodservice, in terms of investment and logical considerations
  • Key examples of top industry players
Adapt and stay on top. Download our free report now.
by GlobalData
Enter your details here to receive your free Report.

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