The Plano-based banking technology company Alkami applies for an IPO

Fast-growing Plano banking technology company Alkami plans to go public with an initial stock offering that could raise $ 250 million.

The company is yet to determine how many shares it will sell and at what price, as filed with the US Securities and Exchange Commission. IPO analyst Renaissance Capital expects Alkami to raise up to $ 250 million.

According to Reuters, the IPO will likely cost Alkami a valuation of $ 3 billion. The digital banking platform generated $ 112 million in revenue last year, up nearly 150% from 2019, according to the filing on Wednesday.

It intends to use the proceeds of the IPO to fund growth, investments and the development of “new or improved solutions”. Alkami wants to be listed on the Nasdaq under the ticker ALKT.

The cloud-based company has always been one of the fastest growing technology companies in Dallas-Fort Worth. It has raised $ 421 million from investors since its inception in 2009 and is backed by financial giants such as Fidelity Management and Research Co., Franklin Templeton, and Stockbridge Investors.

Alkami’s platform is used by 151 financial institutions, which reportedly reach 9.7 million customers. Its clients are typically smaller banks with assets of less than $ 100 billion. These banks need to keep pace with the digital transformation, but typically don’t have the resources to develop their own technology.

The company generates income through subscription-based contractual arrangements with these banks. 94% of annual sales come from subscriptions.

“We believe that digital banking innovations and the seamless end-user experiences they enable are too important to be assigned to a handful of banks in this country,” wrote CEO Michael Hansen in a letter to investors included in the filing.

In 2017 the company doubled the size of its headquarters in Plano and ended 2020 with 609 employees. It received spots on Deloitte’s Technology Fast 500 lists in 2018 and 2019, and was ranked 903th that year. Inc. 5000 with 3 year sales growth of 516%.

For potential investors, the company announced in its filing that it will distribute a dividend for the first time since going public, which will be paid to the holders of its preferred shares.