Bill.com reveals follow-on offering

Bill.com Holdings has announced a follow-on offering of new and existing shares potentially worth as much as USD 473.96 million, just six months after raising USD 248.54 million in a listing on the New York Stock Exchange. Goldman Sachs, BofA Securities, Jefferies and KeyBanc Capital Markets are joint lead bookrunning managers for the proposed sale of 3.25 million new stocks, which includes an overallotment option for a further 900,000 scrips. The US financial software platform developer could raise as much as USD 285.06 million, based on a proposed maximum price of USD 68.69 apiece flagged in the prospectus. Bill.com intends to use proceeds for working capital and other general corporate purposes, which may include research and development, sales and marketing, general and administrative matters, and expenditures. However, the group could also use a portion of the money raised for the acquisition of, or investment in, technologies, solutions, or complementary businesses, though no such agreements are currently in place. Certain shareholders are taking advantage of the 208.6 per cent hike in Bill.com’s market value, from an initial public offering of USD 22.00 apiece to yesterday’s close of USD 67.90 and a capitalisation of USD 4.93 billion. They are offloading a total of 2.75 million existing scrips, which are worth USD 188.90 million based on the maximum potential price. Bill.com develops cloud-based software that simplifies, digitises, and automates complex back-office financial operations for small and midsize businesses. Customers use the Californian company’s platform to generate and process invoices, streamline approvals, send and receive payments, sync with their accounting system, and manage their cash. Bill.com generated total revenue of USD 64.87 million and USD 108.35 million in the financial years ending 30th June 2018 and 2019, respectively. For the nine months ended 31st March 2019 and 2020, the group recorded USD 76.70 million and USD 115.50 million, respectively, at its top line. Net losses widened significantly to USD 21.59 million in the nine months to 31st March 2020, from USD 2.82 million in Q1-3 2019. © Zephus Ltd

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