Image by Olya Adamovich from Pixabay Bill.com is planning a $535 million follow-on public offering, which dwarfs the its IPO in December. The payments software company sold 11,297,058 shares at $22 per share (including the underwriter’s overallotment). The latest venture into the equity market, expected to be completed by June 15, is for 7 million shares at $74.53 per share.

Just as the company added 1 million shares at a price far higher that initial estimates to the IPO, the follow-on offering was originally planned at 6 million shares. Underwriters have been granted the option to purchase another 1,080,000 shares which would be worth $80.5 million at the offering price. Bill.com is offering 3.25 million shares which will bring estimated proceeds of  $231,660,000 while selling shareholders—all outside investment firms—are offering 3.95 million, with estimated proceeds of  $281,556,000; all before expenses. If the underwriter’s exercise their option, Bill.com will receive about  $307.3 million. The IPO netted Bill.com $225.5 million. Expected use of proceeds cover all bases—product development, general and administrative matters, and capital expenditures—a long with possible M&A activity.

Last modified on Friday, 12 June 2020
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