After a delay, payment technology company Affirm Holdings Inc. about to be paid.
The company, which lets people buy goods and pay over time, priced its initial public offering at $ 49 per share late Tuesday, according to reports from Bloomberg News and Reuters. That price is $ 5 a share more than the top of the proposed range, and would bring in at least $ 1.2 billion and give the company an initial market cap of $ 11.9 billion, based on Affirm’s Securities and Exchange Commission filings. .
Confirm AFRM,
that was co-founded and is led by PayPal Holdings Inc. PYPL co-founder Max Levchin, allows customers to pay for online purchases over time. The company makes money from the merchant office of a transaction when consumers use one of Affirm’s forward products, the most lucrative of which offers a “0% APR” option that allows consumers to make purchases over time without incurring interest. The company also has a “simple rate” loan option, where it charges the consumer for the prepayment.
Executives expected to release Affirm by the end of 2020, but delayed its IPO after massive first day dolls among other so-called unicorns that went public, such as Airbnb Inc.
and DoorDash Inc. DASH,
Read More: After a year of impressive pandemic offerings, these tech companies expect to keep it going
Affirm generated $ 509.5 million in revenue during its last fiscal year ending June, up from $ 264.4 million a year earlier. The company posted a net loss of $ 112.6 million, compared to a loss of $ 120.5 million in the same period last year.
One of the brands that Affirm uses for installment payment options is Peloton Interactive Inc. PTON. The affiliate fitness equipment maker accounted for approximately 28% of Affirm’s sales in the past fiscal year.
See also: Five Things You Should Know About Affirm When It Goes Public
Affirm is one of a number of players in the buy-now-pay-later space. Competitors include Afterpay Ltd. APT,
who trades in Australia; Klarna, which has been supported by Visa Inc. V,
; and Uplift, which has focused on the online travel market.
Affirm is expected to begin trading on the Nasdaq stock exchange on Wednesday with the ticker symbol “AFRM.” In SEC documents, the company said it would sell 24.6 million shares, and insurers – led by Morgan Stanley, Goldman Sachs and Allen & Co. – have access to an over-allotment of 3.7 million additional shares.
Affirm’s IPO comes as the Renaissance IPO ETF IPO,
has risen 22% in the past three months and as the S&P 500 SPX,
has risen 7.6% in that period.