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Bill.com shares jump 69% in market debut

(Reuters) - Shares of Bill.com Holdings Inc BILL.N soared about 69% in their market debut on Thursday, giving the back-office automation software company a valuation of $2.64 billion.

The company’s shares opened at $37.25, compared with its IPO price of $22.

Bill.com’s initial public offering of 9.8 million shares raised about $216 million.

Founded in 2006, the Palo Alto-based company offers cloud-based software that enables small and midsize businesses to automate back-office financial operations, including paying bills and receiving payments.

Experts tracking IPOs said there was a huge opportunity in small and midsize business (SMB) market, which Bill.com targets.

There are 23.5 million SMBs in the United States alone, according to AGC Partners, a boutique investment bank based in Boston.

“There’s a big catch-up happening now, and investors are beginning to sense that,” AGC Partners Chief Executive Officer Benjamin Howe said.

Bill.com’s revenue surged 67% to $108.4 million in the year ended June 30, while it managed to slow the pace of its losses to $7.3 million from a year earlier.

The company processed transactions worth $70 billion in fiscal 2019 and had more than 81,000 customers as of December, according to regulatory filings.

Goldman Sachs, BofA Securities, and Jefferies were the IPO’s lead underwriters.

Reporting by Abhishek Manikandan in Bengaluru; Editing by Vinay Dwivedi

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