Austin-based Q2 Holdings steps through IPO gate

Mar 20, 2014
Austin American Statesman

Q2 Holdings became Austin’s newest publicly traded company on Wednesday, with an IPO that raised about $101 million


The shares went for $13, which was at the high end the $11 to $13 price range the company had been seeking. Q2 Holdings said the total offering was for about 7.8 million shares. Of those, Q2 Holdings said it would sell 6.25 million shares, raising about $81.3 million, while an additional 1.51 million shares would be sold by existing investors, raising about $19.6 million


The underwriters for the IPO also have an option to purchase an additional 1.16 million shares, the company said


In its initial IPO-related filings in February, Q2 had said it hoped to raise up to $138 million from its stock offering


Founded in 2004, the company provides electronic banking services to more than 300 banks and credit unions


Shares of the company were expected to begin trading on Thursday morning under the symbol QTWO on the New York Stock Exchange


Q2 is the first Austin-area company to complete an IPO 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


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


The company’s revenue increased 41 percent to $41.2 million in the nine months ended Sept. 30, compared with the same period the previous year. The company’s net loss widened to $11.3 million from $5.9 million


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