Alkami Opens 38% Higher in Market Debut of Banking Software Firm

Alkami jumped after its initial public offering. The software firm's cloud-based digital banking services are used by more than 160 financial institutions.
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Banking-software provider Alkami Technology  (ALKT) - Get Report made its stock market debut Wednesday on the Nasdaq at $41.26 a share, 38% above the initial public offering price of $30.

At last check shares of Alkami were 52% higher at $45.99. The stock is trading under the ticker symbol ALKT.

Alkami this morning said it priced an IPO of 6 million shares at $30 to raise $180 million before expenses. The underwriters have an option on 900,000 more shares. 

On Monday, the Plano, Texas, company had lifted the estimated pricing of its IPO to a range of $26 to $28 a share. The previous estimated range was $22 to $25 a share.

Alkami's cloud-based digital banking services are used by more than 160 financial institutions. 

The company counts the New York investment firms General Atlantic and D1 Capital among its investors.

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Alkami posted a net loss of $56.6 million for 2020, widening from $43.1 million a year earlier. Revenue reached $112.1 million in 2020, jumping 53% from $73.5 million in 2019. 

It served 9.7 million users in 2020, up more than 34% from a year earlier.

Alkami says that its platform enables community, regional and superregional financial institutions "to compete with large, technologically advanced and well-resourced banks in the U.S.,” the company said in its prospectus.

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The offering is set to close on Friday. Goldman Sachs, JPMorgan Chase and Barclays are lead bookrunning managers for the offering.