Mortgage

MeridianLink publicizes the beginning of its IPO

MeridianLink is the newest mortgage technology company to go public and today is announcing terms and conditions for its expected IPO for next week.

The cloud-based lending and decision making software provider will issue 12 million common shares, of which 10 million will be sold by the company and 2 million by existing shareholders. It also gives its syndicate banks a 30-day option to purchase an additional 1.8 million shares. The company first announced a planned IPO on April 30th.

The expected price range for the stock should be between $ 24 and $ 26 per share when it starts trading sometime next week, according to the Securities and Exchange Commission's S-1 document. It would rise between $ 331.2 million and $ 358.8 million if stock prices stayed within that range.

MeridianLink, headquartered in Costa Mesa, California, reported annual revenue growth of 30.5% in 2020 to $ 199.3 million from $ 152.7 million. Net income also rose to $ 9.2 million from $ -12.6 million in 2019.

MeridianLink has had a busy year so far, adding assets in January to TazWorks – a platform that specializes in consumer reporting and background screening. The terms of this deal were not disclosed.

As early as 2017, the co-founder and former CEO of MeridianLink, Binh Dang, tried to liquidate the company after ongoing legal disputes with other executives. He petitioned the California Supreme Court that it was in the company's best interests to voluntarily cease operations.

MeridianLink plans to list on the New York Stock Exchange under the ticker symbol MLNK.

BofA Securities, Credit Suisse and Barclays are the leading book running managers. Citigroup Global Markets and Raymond James & Associates will be the Book-Running Managers and BTIG, Wolfe Nomura Strategic Alliance, Stifel, Nicolaus & Company, William Blair, Blaylock Van, Roberts & Ryan Investments, Samuel A. Ramirez & Company and Tigress Financial Partners Co-manager for the proposed offer.

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