(Reuters) -U.S. payments firm AvidXchange Holdings Inc said on Friday it is aiming for a valuation of nearly $5 billion, after boosting the price range for its initial public offering.
The company is now looking to sell 22 million shares priced between $23 and $25 each. At the top end of the newly announced range, AvidXchange will raise up to $550 million in the IPO.
Earlier it had set a range of $21 to $23 per share, aiming to raise up to $506 million.
The hike in price range indicates high demand among investors for shares of financial technology firms, even as volatility in the broader market forced exercise equipment maker iFIT and alternative investment technology company Allvue Systems Holdings to shelve their share sales in recent days.
Payment companies have been highly successful over the past year, as the COVID-19 pandemic accelerated digital transformation across industries.
AvidXchange provides payment solutions for middle market businesses and their suppliers. It says its platform allows to process invoices faster than paper-intensive methods.
The company caters to over 7,000 businesses spanning real estate, financial services, healthcare, media and other industries. It also does not have a significant customer concentration, with top 10 customers accounting for less than 15% of revenue in 2020 and in the first half of this year, the company said.
AvidXchange processed around 53 million transactions worth about $145 billion last year, according to its website.
The Charlotte, North Carolina-based company was valued at $2 billion in a funding round in April last year.
AvidXchange, which is backed by billionaire Peter Thiel, said it expects to list on the Nasdaq under the symbol “AVDX”.
Reuters reported exclusively in March that AvidXchange had hired investment banks to prepare for an IPO.
Reporting by Sohini Podder and Niket Nishant in Bengaluru; Editing by Anil D’Silva and Shailesh Kuber
Our Standards: The Thomson Reuters Trust Principles.