7 things to know about the upcoming $ 4.2 billion IPO of AvidXchange Holdings (AVDX) shares

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AvidXchange Holdings (NASDAQ: AVDX) is expected to launch its IPO next week. The IPO will be available to investors on the RobinHood IPO access platform, among other brokerages. AvidXchange is a leading provider of automation software and Accounts Payable, or AP, payment solutions for mid-market businesses and their vendors.

1. Avidxchange IPO calendar: AvidXchange Holdings is expected to have its IPO on October 13, 2021. The stock will trade on NASDAQ under the symbol “AVDX”. Normally, IPOs on NASDAQ started between 10:00 a.m. and 2:00 p.m. ET.

2. Avidxchange IPO price: AvidXchange Holdings shares are expected to be listed between $ 21 to $ 23 per share. It could go up or down in price depending on demand.

3. Offered shares: AvidXchange Holdings offers 22,000,000 shares of ordinary shares in the offering. The total number of shares outstanding after the offer will be 191,350,102 shares.

4. Valuation of the IPO: Pricing in the middle of the range would value AvidXchange at $ 4.21 billion.

5. Subscribers: The offering is led by Goldman Sachs, JP Morgan, BofA Securities, Barclays, Credit Suisse, KeyBanc, Deutsche Bank, Piper Sandler, Nomura and Fifth Third Securities.

6: Finances: Avidxchange generated revenues of $ 149.6 million in 2019 and $ 185.9 million in 2020, representing growth of 24.3% year over year. The gross margin was $ 62.6 million in 2019 and $ 85.4 million in 2020, resulting in a gross margin of 41.9% in 2019 and 45.9% in 2020. Our gross margin non-GAAP was $ 78.6 million in 2019 and $ 102.3 million in 2020, resulting in gross margins of 52.5% in 2019 and 55.0% in 2020. Our net loss was $ 93.5 million in 2019 and $ 101.2 million in 2020, and we have generated a net loss of over $ 484.0 million since our inception.

7. Total Addressable Market (TAM): In addition to providing B2B payments, the company believes they can become a strategic cornerstone of our supplier financial organizations to better manage expenses and cash flow. They believe there is a significant unmet need for supplier invoice financing, with nearly half of the market underserved. The company’s solutions help suppliers expedite prepayment invoices, manage supplier payment preferences and forecast future cash flows. They believe the total addressable market opportunity for these solutions represents over $ 20 billion in additional white space opportunities, bringing the total addressable market to north of $ 40 billion.

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