Bill.com Sets IPO Price Slightly Higher Than Expected

Back-office automation software company Bill.com has set a share price for its IPO, according to a report by Reuters.

The company will be offering $22 per share, which equals about $216.1 million. The price is slightly higher than the expected amount of $19 to $21, which it had originally marketed. The firm’s market capitalization is at $1.56 billion, which includes the underwriters’ option.

Since launching in 2006 in Palo Alto, Bill.com has been providing SMBs with automated back-office payment operations, such as payroll and bill payment.

The company’s revenues jumped 67 percent from the previous year, reaching $108.4 million. Its net loss only went up 1.7 percent to $7.3 million.

Bill.com is a popular option among smaller companies that don’t necessarily have the revenue or resources to build out digital payment operations.

In 2019, the company processed about $70 billion in transactions for more than 81,000 customers. The firm has also partnered with larger financial institutions (FIs) to service their smaller clients. For example, Bill.com has partnerships with JPMorgan Chase, Bank of America and American Express.

The company is trading on the New York Stock Exchange under the ticker “BILL.” The IPO’s lead underwriters were Goldman Sachs, BofA Securities and Jefferies.

In other financial news, Goldman is planning to launch a digital wealth management service in 2020 for customers with as little as $5,000 to invest. The company is also planning to launch a robo advisor next year, offering a solution for clients with as little as “$5,000, $10,000 or $15,000” to invest, said Joe Duran, founder of the United Capital wealth management firm that Goldman acquired earlier this year. While the minimum investment has not yet been finalized, it will be “significantly lower” than Goldman’s traditional accounts.