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Banking & Finance

NCino Shares Expected To Begin Trading This Week

By Christina Haley O'Neal, posted Jul 13, 2020
Pierre Naudé, CEO of nCino, is the leader of the Wilmington-headquartered company, which is potentially going public this week. (File photo)
Wilmington-based nCino's initial public offering is expected to begin trading this week. 

nCino, a provider of cloud-based software for financial institutions, will trade on Nasdaq under “NCNO,” and could potentially raise nearly $254.3 million should its initial public offering go on the stock market as planned this week, according to Nasdaq.

The IPO for nCino is listed for Wednesday, according to Nasdaq’s IPO calendar. The Nasdaq calendar website notes: "Expected IPO date is estimated by EDGAR Online based on filing dates and are not official."

The initial trade is set to be offered between $28 and $29 per share at 7,625,000 shares, up from the previous expectation that the firm’s common stock would be offered at an initial a price point between $24 and $27 per share, listed in its July 7 SEC filing.

The $28-$29 per share price range would up nCino’s valuation by about $500 million from the previous price range, putting it between $2.5 billion and $2.6 billion.

The company has granted the underwriters a 30-day option to purchase up to 1,143,750 additional shares of nCino's common stock at the IPO price, less the underwriting discounts and commissions.

The company on Friday announced plans to raise $217 million with the IPO.  

"At the midpoint of the revised range, nCino will raise 24% more in proceeds than previously anticipated to command a fully diluted market cap of $2.8 billion," stated officials in the Friday release.

"BofA Securities, Barclays, KeyBanc Capital Markets and SunTrust Robinson Humphrey are the joint bookrunners on the deal," stated the release.

nCino on June 22 announced its proposal to go public.

nCino reported in its SEC filing that the money raised from the IPO will be used “for general corporate purposes, including working capital and capital expenditures such as additional office facilities.”

The firm added, “We may also use a portion of the net proceeds to acquire, invest in or obtain rights to complementary technologies, products, services or businesses. There are no such transactions or agreements at this time.”

nCino reported in that same filing total revenues of $138.2 million in fiscal 2020, $91.5 million for fiscal 2019, and $58.1 million in fiscal 2018 (nCino ends its fiscal year on Jan. 31). That represents a 54.2% compound annual growth rate, according to the firm.

nCino officials said Friday that the firm booked $153 million in revenue for the 12 months that ended April 30.

The growing fintech firm spun out of Wilmington-headquartered Live Oak Bank as its own independent fintech company in late 2011. The fintech firm has seen growth ever since.

The firm, which holds headquarters at 6770 Parker Farm Drive in Wilmington, has more than 900 global employees across seven offices.

Should the firm go public this week, they would be among a short list of Wilmington-headquartered, publically-traded companies. PPD Inc., a Wilmington-based contract research organization, raised $1.62 billion in its IPO in February. And Live Oak Bank started trading on Nasdaq in 2015.

Analysts familiar with the fintech sector have previously said nCino is a well-known company with solid financials and a strong backing of big investors. Benefits of going public, analysts say, include the ability to accelerate company growth and potentially provide financial weight to make future acquisitions. Analysts said it could also set the firm up potentially for a merger.
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