Charlotte's Mastercard-backed AvidXchange valued at $4.6bn in lacklustre Nasdaq debut
by SOURAV D | VIEW 2418
Later last week, the Charlotte, North Carolina-headquartered business payment firm AvidXchange Inc had been valued at a lump-sum of $4.62 billion in a tepid Nasdaq debut, illustrating investors’ concern about an upscaled volatility in US capital market as third-quarterly earnings’ season kicked off. In point of fact, AvidXchange shares had opened at $24.14 apiece at its US public market floatation later last week, about 3.4 per cent lower from its IPO (Initial Public Offerings) price of $25 a share. Nonetheless, shares’ prices of AvidXchange Inc that counts payment processing giant Mastercard as one of its leading investors, dipped 4.03 per cent on Friday and wrapped up the week about 6.34 per cent down from its IPO tag at $23.36 per share. If truth is to be spoken, AvidXchange Inc’s upsized initial offerings that sold off 26.4 million ADSs (American Depository Shares), raising around $600 million, came forth at a time when a clutch of companies appeared to be shelving their plans of a potential public market floatation amid mixed response from investors for newer stocks with Peloton rival iFIT alongside GIC-backed clinical trial firm WCG withdrawing their IPO plans.
AvidXchange Inc makes tepid US public market entrance
Nevertheless, a flurry of fintech firms like of AvidXchange Inc., turned out to be utterly successful during a pandemic-era new normalcy, as a raft of entities had adopted pandemic-associated digital transformations across wide-ranging industries.
Meanwhile, adding that the proceedings of AvidXchange Inc IPO would be invested in product development alongside sales and marketing while spanning its employee-based further, the fintech firm co-founder and Chief Executive Mike Praeger said to the reporters, “We may also use a portion of the net proceeds for acquisitions or strategic investments in complementary businesses, products, services or technologies”.