Fast-growing Plano banking technology firm Alkami filed to go public Wednesday in an initial stock offering that could raise $250 million.
The company is still determining the number of shares it will sell and at what price, according to its filing with the U.S. Securities and Exchange Commission. IPO analysis firm Renaissance Capital expects Alkami to raise up to $250 million.
The IPO will likely put a $3 billion valuation on Alkami, according to Reuters, which cited people familiar with the deal. The company brought in $112 million in revenue last year, a nearly 150% increase over 2019, according to the filing.
It plans to use the proceeds from its public offering to fund growth, capital expenditures and development of “new or enhanced solutions.” Alkami plans to list on Nasdaq under the ticker ALKT.
The cloud-based banking platform has consistently been one of the fastest-growing companies in Dallas-Fort Worth for the last several years. It’s backed by financial giants like Fidelity Management and Research Co. as well as Franklin Templeton and Stockbridge Investors.
Alkami’s platform offers mobile, cloud-based banking services to 151 financial institutions reaching 9.7 million client customers, according to the filing. It has raised $421 million from investors since being founded in 2009.
The company will issue a dividend for the first time following its public offering that will be payable to holders of its preferred stock, according to the filing.
Alkami clients tend to be smaller banks with fewer than $100 billion in assets. Those banks need to keep up with digital changes but don’t typically have the resources to develop their own digital banking technology.
The company brings in revenue through subscription-based contract agreements with those banks.
“We believe that digital banking innovation and the seamless end-user experiences it enables are too important to be relegated to a handful of banks in this country,” CEO Michael Hansen wrote in a letter to investors included in the filing.
In 2017, the company doubled the size of its headquarters in Plano. It earned spots on Deloitte’s Technology Fast 500 lists in 2018 and 2019, and ranked 903rd in this year’s Inc. 5000 with three-year revenue growth of 516%.