Online lender Affirm seeks to raise up to US $ 934 million in IPO

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Affirm Holdings Inc., which provides installment loans to online shoppers, is seeking to raise up to US $ 934.8 million in an initial public offering, indicating that last year’s record listings are rising. continue until 2021.

The San Francisco-based company said in a statement Tuesday that it plans to sell 24.6 million shares for US $ 33-38 each.

At the top of that price range, Affirm is said to have a market value of US $ 9.22 billion based on the outstanding shares listed on its filing. Including employee stock options and restricted stock units, Affirm would have a valuation of over US $ 11 billion, based on the filing.

The company expects to make its commercial debut on Jan. 13, said a person familiar with the matter who asked not to be identified because it was not public. A representative for the company did not immediately respond to a request for comment.

The value of the company could change further after discussions with potential investors during its IPO roadshow.

Affirm follows consumer tech companies including Airbnb Inc. and DoorDash Inc., which propelled IPOs on the U.S. stock exchanges last year to a record high of more than $ 179 billion U.S. dollars. Affirm was scheduled to go public in December, but delays by the U.S. Securities and Exchange Commission have pushed its listing back, people familiar with the matter told Bloomberg News.

More than 6,500 traders use Affirm’s platform, according to its prospectus filed with the US Securities and Exchange Commission. After selecting their purchases, buyers can choose a schedule to pay for them at an annual interest rate of 0-30%, according to the Affirm website.

For the third quarter, Affirm recorded a net loss of $ 15 million on revenue of $ 174 million, compared to a loss of $ 31 million on revenue of $ 88 million in the same period in 2019, according to his file.

Home exercise company Peloton Interactive Inc. was Affirm’s largest business partner by far, accounting for 30 percent of its total third quarter revenue. Its top 10 merchants, including Peloton, produced around 37% of Affirm’s revenue during the period, creating the risk that its business would be affected by the loss of one of those partners, according to the filing.

Affirm was founded in 2012 by Max Levchin, who also co-founded PayPal Holdings Inc. Levchin is the company’s largest shareholder, according to the filing. Other big owners include Jasmine Ventures, Khosla Ventures, Founders Fund, Lightspeed Venture Partners, and Shopify Inc.

The company said its Class B shares will carry 15 votes each, while the Class A shares sold in the IPO will have one vote each. Levchin will control nearly 20% of the voting rights after the offer, according to the filing. At 8.6%, Jasmine Ventures will control the next largest voting block.

The offering is being led by Morgan Stanley, Goldman Sachs Group Inc. and Allen & Co. Affirm plans to list its shares on the Nasdaq Global Select Market under the symbol AFRM.

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