Mastercard-backed AvidXchange valued at $4.6 billion in tepid Nasdaq debut

(Reuters) -AvidXchange Inc opened around 3.4% below its initial public offering (IPO) price in its Nasdaq debut on Wednesday, giving the U.S. business payments firm a market capitalization of roughly $4.62 billion.

Shares of the company, which counts Mastercard Inc among its investors, opened at $24.14, compared with the IPO price of $25 per share.

AvidXchange, which makes software that automates payments, invoicing, and accounting for small and mid-sized businesses, had raised $660 million in its upsized IPO on Tuesday by selling 26.4 million shares.

The Charlotte, North Carolina-based firm had earlier targeted an IPO price range of $21 to $23, before hiking it to $23 and $25 per share last week.

Financial technology firms that facilitate payments for businesses have been highly successful over the past year, as the COVID-19 pandemic accelerated digital transition across industries.

Goldman Sachs and J.P.Morgan were the lead underwriters for the offering.

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