US online ordering specialist Olo Inc has seen a rush for its shares ahead of its IPO in New York, pointing to favourable omens for Deliveroo’s float in London.
Olo starts trading later today having raised the price of its offer fo US$25 per share last night from an original target of US$16-18 and a revised target of US$20-22 and valuing the business at around US$3.6bn.
Like Deliveroo, Olo’s business has got a tailwind from lockdown restrictions and people ordering more takeaways at home.
Among its 400 customers are US stalwarts Denny’s, the Cheesecake Factory and Shake Shack with the service available in 64,000 locations.
Revenue rose 94% to US$98.4mln in 2020 compared to US$50.7mln in 2019, revealed the listing documents, which also showed it swung to a profit of US$3,1m from a loss of US$8.3mln.
Olo is said to be raising US$450mln compared to £1bn Deliveroo is seeking ahead of its float.
Deliveroo has yet to set a firm date for its IPO but it is likely to be next month and yesterday sent out invitations for customers to participate as part of a £50mln 'community offer'.
Loyal customers will get first refusal if the offer is over-subscribed, it said.
Deliveroo reported an underlying loss of £224mln in 2020.