Q2 Holdings IPO Off to Solid Start

Banking, finance, and taxes

Published: March 20, 2014 10:55 am

Last Updated: April 28, 2020 3:50 am

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Q2 Holdings Inc. (NYSE: QTWO) held its initial public offering Thursday morning, selling 7.76 million shares at $13 a share, the high end of its estimated range. The company provides cloud-based banking solutions for regional and community financial institutions.

Gross proceeds from the IPO totaled $101 million. J.P. Morgan Securities and Stifel Nicolaus were joint book-running managers. Co-managers included RBC Capital Markets, Raymond James, Canaccord Genuity and Needham. The underwriters have an option to purchase an additional 1.16 million shares at the IPO price.

Q2 Holdings is one of three tech IPOs this week. Based on early trading, it appears to be holding its own, up nearly 30%. Wednesday’s entry, Paylocity Holding Corp. (NASDAQ: PTCY), closed its first day of trading up about 40%. Amber Road Inc. (NYSE: AMBR) is set to begin Friday morning.

Cloud-based software offerings for human resources, payroll and health care benefits systems are thick on the ground. Q2 hopes that aiming at mid-sized banking and financial institutions will set it apart, but it will be competing with Salesforce.com Inc. (NYSE: CRM), certainly not an easy proposition.

Shares were up about 30.4% to $16.95, after hitting a peak of $17.38 earlier.

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