FinTech nCino Plans Initial Public Offering
It looks as though another FinTech initial public offering could soon be upon us. This week, nCino announced plans to go public. As TechCrunch reports, the firm is currently eying a share price between $22 to $24. With nCino planning to issue 7.625 million shares, the IPO could raise as much as $183 million and put the company’s value somewhere in the neighborhood of $2 billion. The stock is set to debut on the Nasdaq Global Select Market, using the ticker symbol “NCNO.”
Based in Wilmington, North Carolina, nCino bills itself as a bank operating system that aims to automate and streamline processes employed by banks, credit unions, and others. According to their updated S-1 filing, there are now more than 1,100 institutions using their platform. Moreover, these customers currently spans across 10 countries, while the company itself employs more than 900 people between seven global offices.
Meanwhile, on their website, nCino notes that their average customer sees a 22% improvement in efficiency, a 92% reduction in servicing costs, and a 127% increase in account opening completion rates among other benefits.
In their prospectus, nCino included testimonials from some of the institutions they work with. For example, TD Bank’s head of commercial banking Chris Giamo stated, “TD Bank’s investment into the nCino platform ultimately will enable us to provide a seamless experience to our clients and an improved employee experience — both critical to the success of an organization.” Giamo continued, “Through nCino, TD Bank is consolidating numerous legacy systems into one top-tier foundational platform that allows for better communication, credit administration and processes, and through data, advanced visibility into the lifecycle of relationships and future opportunities.” Speaking to more recent applications Coastal States Bank EVP and chief credit officer explained, “With nCino, we can not only provide much-needed funding to our small business customers, but we can track in real-time how much of our pipeline is related to COVID-19, easily create automated and customized reports, make changes quickly in a constantly-evolving situation, and ensure we are always remaining compliant.”
Famously, FinTechs haven’t always fared so well after going public. Common examples of this include online lenders LendingClub and OnDeck, which both received warm welcomes in their IPOs but have since struggled. On the other hand, Square Inc. has seen continued success, recently reaching an all-time high. Of course, while nCino may fall into the same broad label as those firms, the comparisons more or less stops there. Therefore it will be very interesting to see how investors react to the stock once it makes its big debut.