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Financial software maker Yodlee's shares rise 45 percent in debut

October 5
2:15 AM 2014

Shares of Yodlee Inc (YDLE.O), which is backed by private equity firm Warburg Pincus [WP.UL], rose about 45 percent in their debut, valuing the provider of software to financial companies at nearly $500 million.

The company raised about $75 million after its initial public offering was priced at $12 per share, the mid-point of its expected range of $11-$13 per share.

Yodlee sold all the 6.25 million shares in the offering.

The stock opened at $16.20 and touched a high of $17.44, making it the biggest percentage gainer on the Nasdaq. More than 5.5 million shares changed hands by 11.35 am ET. 

Yodlee's platform, known as the Yodlee Financial Cloud, is used by banks, internet services companies and third-party financial app developers to track consumers' financial information.

The company gets nearly 14 percent of its business from Bank of America Corp (BAC.N), which is also its second-largest shareholder.

Warburg Pincus' stake in Yodlee fell to 28.8 percent from about 37 percent after the IPO, while Bank of America's stake fell to 9.91 percent from 12.72 percent.

Yodlee's other major shareholders include private equity firm Institutional Venture Partners, venture capital firm Accel Partners and ACI Worldwide Inc's (ACIW.O) unit, ACI Worldwide Corp.

Redwood City, California-based Yodlee's revenue rose about 29 percent to $41.1 million for the six months ended June 30.

The company's net loss narrowed to $949,000 from $2.63 million a year earlier.

Goldman Sachs & Co, Credit Suisse and BofA Merrill Lynch are among the lead underwriters of the offering.

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