IPO

Cloud-based FI Software Provider nCino To Go Public

nCino To Go Public

nCino, a cloud-based software provider for financial institutions (FIs), plans to go public, per a press release.

In its initial public offering (IPO) filing with the U.S. Securities and Exchange Commission (SEC) on Monday (June 22), the North Carolina-based company said it plans to raise $100 million.

nCino, which was founded in 2012, said it will use the proceeds of its stock sale to purchase additional office buildings, and may also use a portion to acquire, invest in or obtain rights to complementary technologies, products, services or businesses. 

“Our cloud-based platform empowered our customers to quickly and safely move their employees to work from home with no disruption to their operations,” nCino Co-founder and CEO Pierre Naudé wrote in a letter to investors announcing the IPO.

“We further enabled our customers’ most critical business processes during this time by enabling them to underwrite government stimulus loans to their clients that had been impacted by the pandemic, helping sustain these businesses during this challenging time,” he continued.

The company’s subscription revenues in fiscal 2020 were $103.3 million, or 74.7 percent of total revenues, up from $64.5 million (70.4 percent of total revenues) in 2019 and $38 million (65.4 percent of total revenues) in fiscal 2018, representing a 64.7 percent compound annual growth rate, the company reported.

Still, nCino has yet to earn a profit. The company recorded net losses in fiscal 2018, 2019 and 2020 of $18.6 million, $22.3 million and $27.6 million, respectively, according to its SEC filing.

Its stock would be listed on the NASDAQ Global Select Market under the “NCNO” ticker symbol. The number of shares to be offered and the price range for the offering have not yet been determined, the company said.

BofA Securities and Barclays are the managers for the proposed offering. KeyBanc Capital Markets and SunTrust Robinson Humphrey are also assisting with the proposed offering, along with Piper Sandler, Raymond James and Macquarie Capital. 

nCino said its clients include more than 1,100 FIs globally, whose assets range from $30 million to $2 trillion. Those include TD Bank, SunTrust Bank and Santander Bank. nCino's strategic partners include Accenture, Deloitte Digital, PwC and West Monroe Partners.

Last fall, nCino completed a round of funding with existing investor Salesforce Ventures. At the time, the company said the capital would be used to accelerate innovation of the nCino Bank Operating System through research and development, global expansion, new talent acquisition and employee development.

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