(Bloomberg) -- Ibotta Inc. climbed 17% in its trading debut after the digital marketing software firm and a group of shareholders raised about $577.3 million in an initial public offering priced above a marketed range.

Shares in the company, which helps brands deliver mobile promotions through rewards and rebates, and counts Walmart Inc. as a backer, closed trading at $103.25 each Thursday after earlier gaining as much as 34%. 

The trading gives Denver-based Ibotta a market value of $3.13 billion, based on the outstanding shares listed in its filings with the US Securities and Exchange Commission. Including stock options and restricted share units, its fully diluted value would be closer to $3.6 billion.

Ibotta and the shareholders sold 6.56 million shares for $88 each on Wednesday. The company, which had marketed the shares for $76 to $84 each, increased the size of the offering on Tuesday from about 5.6 million, according to its filings.

With the upsize, more than 4 million shares in the IPO were to be sold by current shareholders including Chief Executive Officer Bryan Leach and an arm of Koch Industries Inc., the filings show. The company offered 2.5 million of newly issued shares.

IPO Pace

The listing brings the total raised via IPOs on US exchanges this year to more than $12 billion, compared with only $3.9 billion at this point in 2023, according to data compiled by Bloomberg. That rebound follows a nearly two-year lull in offerings following an all-time high in 2021.

Centuri Holdings Inc., a infrastructure services business spun out of Southwest Gas Holdings Inc., also rose in its trading debut Thursday, with its stock climbing 10%. Centuri raised a total of $314.8 million in the IPO and a concurrent private placement by activist investors Carl Icahn.

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Ibotta handles promotions for more than 2,400 brands, such as Coca-Cola, Whirlpool and Hallmark, its filings show. It had net income of $38 million on revenue of $320 million last year, compared with a net loss of $55 million on revenue of $211 million the previous year, according to the filings.

In 2019, Ibotta was valued at $1 billion in a series D funding round led by Koch Disruptive Technologies, a Koch Industries investment arm. Koch remains one of Ibotta’s largest investors and was set to own about 15% of the company’s Class A shares after the offering, the filings show.

Coupon Shoppers

Notable Capital managing partner Hans Tung said his firm, formerly known as GGV, invested in Ibotta in 2017 because of the large market opportunity, considering the portion of Americans living paycheck to paycheck. He said Ibotta has been innovative in building partnerships like the one with Walmart, which cuts customer acquisition costs.

“The partners pay for marketing,” Tung said. He added that Ibotta has also been effective at targeting its customers with personalized deals.

Clark Jermoluk Founders Fund 1 LLC owns about 19% of the Class A shares after the offering, according to the filings. Walmart, which has the right to buy more than 3.5 million shares, has at least 8.2% of the Class A stock.

Ibotta founder and CEO Leach owns all of the company’s Class B shares, and has 71% of the voting power following the offering, according to the filings.

The IPO was led by Goldman Sachs Group Inc., Citigroup Inc. and Bank of America Corp. Ibotta shares trade on the New York Stock Exchange under the symbol IBTA.

(Updates with closing share price in second paragraph)

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