EngageSmart, a Braintree-based customer engagement software company, valued its initial public offering at $ 26 per share, slightly above the expected range of $ 23 to $ 25 per share, valuing the company at around $ 4 billion. After the first trading day Thursday, the shares closed at $ 34.12, up 31% from the IPO price.
Amid a booming market for public offerings, the deal will net the company $ 338 million while selling shareholders will raise $ 40 million. The shares trade on the New York Stock Exchange under the symbol ESMT.
EngageSmart creates software to help customers, from hospitals to utilities, collect payments. It also offers software to manage healthcare and wellness practices and manages the popular nonprofit fundraising tool DonorDrive.
Revenues for the first half of 2021 totaled $ 99 million, up 59% from the same period a year earlier. EngageSmart reported first half net income of $ 300,000 compared to a net loss of $ 6.4 million a year ago.
The public offering comes in one of the busiest weeks for a public debut in decades, including the IPOs of the Boston companies Toast and Definitive Healthcare and the listing of the SPAC merger of Ginkgo Bioworks. The wave of new state-owned companies is reshaping the local tech scene and providing wealth that could potentially support many more startups.
In the current wave of exits, more than a dozen Boston entrepreneurs have exceeded $ 100 million in shares in their businesses. EngageSmart founder and CEO Bob Bennett will end up with 3.5-3.7 million shares after the IPO, worth more than $ 100 million.
Bennett founded several companies, including MicroFridge, which sold a combined refrigerator, freezer, and microwave in the 1980s.
JP Morgan, Goldman Sachs & Co., BofA Securities and Citigroup led the transaction.
Aaron Pressman can be reached at firstname.lastname@example.org. Follow him on twitter @ampressman.