Bank Software Firm Alkami Plans IPO At $2 Billion Valuation

Alkami Technology, a provider of cloud-based digital solutions for financial institutions (FIs), is planning an initial public offering (IPO) that could value the firm at more than $2 billion, the company said in a press release on Monday (April 5).

Headquartered in Plano, Texas and founded in 2009, the company will offer six million shares of its common stock expected to be priced at $22-$25 each. It is planning to list on The Nasdaq Global Select Market (NQGS) under the ticker symbol ALKT. The company said it is looking to raise as much as $150 million.

In its filing with the Securities and Exchange Commission (SEC), Alkami said it had recurring annual revenue of $128 million at the end of last year and a subscription revenue mix of 94 percent. Its user base is 9.4 million.

“We founded Alkami to help level the playing field for FIs. Our vision was to create a platform that combined premium technology and FinTech solutions in one integrated ecosystem, delivered as a SaaS solution and providing our clients’ customers with a single point of access to all things digital,” the company said in the filing.

Goldman Sachs, J.P. Morgan and Barclays will act as joint lead book-running managers for the offering. Citigroup and William Blair will be book-running managers, and JMP Securities, KeyBanc Capital Markets and Needham & Company will act as co-managers.

Alkami first announced its intentions for an IPO in February and has been raising money since September 2020, including $140 million from a private valuation. Michael Morris, head of technology at the Australian FinTech Up, told PYMNTS that banks need to think like technology firms, especially as tech continues to move into the banking territory.

In June 2020, just 70 percent of FIs were using cloud-based technology. Even more surprising is that more than 90 percent of the world’s top 100 banks are still using 20th-century mainframes.