i3 Verticals Inc., a payments software company, said its initial public offering of 6,650,000 shares of its class A common stock is expected to be priced between $11 per share and $13 per share.
It expects net proceeds of about $74.2 million, assuming the shares are priced at $12 each.
Net proceeds will be used to to purchase 6,266,583 common units directly from i3 Verticals LLC and 383,417 common units from a continuing equity owner. I3 Verticals LLC expects to receive $69.0 million in net proceeds from the sale of its common units.
Upon completion, investors of the offering will own 26.0% of i3 Verticals Inc. and about 26.0% of its voting power. Meanwhile, i3 Verticals Inc. will own about 31.7% of the economic interest in i3 Verticals LLC and will become its sole managing member. It will also operate and control all of i3 Verticals LLC's businesses and affairs, conducting business through the entity and its units.
The company also plans to grant underwriters a 30-day option to purchase up to an additional 997,500 common shares.
I3 Verticals Inc. delivers payment and software solutions to small- and medium-sized businesses and entities. Its shares are expected to trade on the Nasdaq Global Select Market under the ticker symbol IIIV.
Cowen and Raymond James are joint book-running managers and representatives of the underwriters, while KeyBanc Capital Markets is a book runner for the offering.
