Austin-based Q2 Holdings sets IPO terms, aims to raise up to $116 million

Mar 10, 2014
Austin American Statesman

Austin-based Q2 Holdings, which provides electronic banking services to banks and credit unions, has set terms for its initial public offering of stock, according to securities filings


Q2 Holdings plans to raise up to $116 million in the IPO, by offering up to 8.9 million shares at a price range of $11 to $13, according to the company. In its initial IPO-related filings in February, Q2 Holdings had said it hoped to raise up to $138 million from its stock offering


Of the 8.9 million shares, 6.25 million would be sold by Q2 Holdings, which could raise between $68 and $81 million, depending on the final pricing. Another 1.51 million shares would be sold by existing shareholders, which could raise between $16.6 million and $19.6 million. An additional 1.16 million shares could be purchased at the IPO price by underwriters, according to the company. J.P. Morgan Securities and Stifel Nicolaus & Co. are the lead underwriters in the Q2 offering


The company did not give a planned date for the IPO, which would be the first for an Austin-based company this year. Last year, Central Texas had five offerings: oil and gas company Jones Energy Inc.; online coupon company RetailMeNot; natural gas compression service provider USA Compression Partners; spinal-device maker LDR Holding Corp. and energy startup Ideal Power


Founded in 2004, Q2 Holdings had $57 million in revenue for 2013, according to securities filings. The company’s banking and credit union customers have more than 3 million active users of tablets, smartphones or online banking


In July, Q2 unveiled its new 85,000-square-foot headquarters at Aspen Lake One, near U.S. 183 and Texas 45. At the time, Q2 had 350 employees and was planning for growth. The new offices are equipped to handle 500 workers, officials said


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