Saturday , November 9, 2024

Processor Bill.com ‘Upsizes’ Its New Stock Offering

It’s not yet profitable, but Bill.com Holdings Inc. must be doing something Wall Street likes. The processor, which had its initial public offering in December at $22 per share, on Wednesday announced an “upsized” follow-on offering of 7.2 million shares of common stock priced at $74.25 per share. 

It was only on Monday that Palo Alto, Calif.-based Bill.com, whose stock closed Friday $70.16 per share, announced 6 million shares would be sold in the new offering. A company spokesperson was not available Thursday morning to comment on why the offering size was increased.

Bill.com itself offered 3.25 million shares in the upsized sale—the same number as proposed originally—for $241.3 million in gross proceeds before underwriting and related expenses. The other 3.95 million shares were sold by existing stockholders that include the company’s top executives and investment funds. Bill.com will not get any proceeds from that part of the sale.

“The principal purposes of this offering are to facilitate an orderly distribution of shares by the selling stockholders and increase our public float,” says a Bill.com prospectus. “We currently intend to use the net proceeds we receive from this offering for working capital and other general corporate purposes, which may include product development, general and administrative matters, and capital expenditures.” The filing also says some of the proceeds may be used for the acquisition of or investments in “technologies, solutions, or businesses that complement our business.”

Bill.com is an invoice-management and business-to-business payments provider for 91,000 small and mid-sized businesses that generated $71 billion in payment volume for the nine months ended March 31, according to the prospectus. The company’s platform is integrated with 4,000 accounting firms as well as banks and payment processors. Payment services include automated clearing house transactions, check acceptance, cross-border payments and wire transactions, and payment card acceptance through a third party.

Total revenue came to $115.5 million for the nine months ended March 31, up 51% from $76.7 million in the year-earlier period. The company posted net losses of $21.6 million and $2.8 million in the respective periods.

Bill.com’s underwriters have a 30-day option to buy another 1.08 million shares at the public offering price.

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