After a delay, payment technology company Affirm Holdings Inc. gets paid.
The company, which allows people to buy goods and pay over time, valued its IPO at $ 49 per share late Tuesday, according to reports from Bloomberg News and Reuters. That price is $ 5 per share, above the upper bound of the proposed range and would raise at least $ 1.2 billion and give the company an initial market capitalization of $ 11.9 billion, based on Affirm filings with the Securities and Exchange Commission.
Co-founded PYPL co-founder Max Levchin, run by PayPal Holdings Inc., enables customers to pay for online purchases over time. The company makes money at the end of a transaction with the merchant when consumers use one of Affirm's rate products. The most lucrative of these offers a 0% APR option which allows consumers to make purchases over time without incurring interest. The company also has a "simple rate" loan option that charges consumers the prepayment.
Executives expect Affirm to go public in late 2020, but delayed going public after other so-called unicorns who went public, such as Airbnb Inc.
and DoorDash Inc.
For more: After a year of impressive pandemic deals, these tech companies expect it to continue
Affirm had sales of $ 509.5 million for the last fiscal year that ended in June, compared to $ 264.4 million the previous year. The company recorded a net loss of $ 112.6 million compared to a loss of $ 120.5 million for the same period last year.
The brands that use Affirm for installment options include Peloton Interactive Inc. PTON. The manufacturer of connected training devices accounted for around 28% of Affirm's sales in the last fiscal year.
See Also: Five Things You Should Know About Affirm When It Comes To The Public
Affirm is one of several players in the "Buy Now, Pay Later" area. Afterpay Ltd. is among the competitors.
trading in Australia; Klarna, who has received assistance from Visa Inc.
;; and Uplift, which has focused on the online travel market.
Affirm is expected to be listed on the Nasdaq Stock Exchange on Wednesday with the ticker symbol “AFRM. In filing with the SEC, the company said it would attempt to sell 24.6 million shares and subscribers – led by Morgan Stanley, Goldman Sachs and Allen & Co. – have access to an aggregate allotment of an additional 3.7 Million shares.
Affirm goes public as a Renaissance IPO ETF
has gained 22% in the last three months and as S&P 500
has increased by 7.6% during this time.