After a delay, the payment technology company Affirm Holdings Inc. is about to be paid.
The company, which allows people to buy goods and pay on time, priced its initial public offering at $ 49 a share late Tuesday, according to Bloomberg News and Reuters reports. That price is $ 5 per share higher than the top of the proposed range and would raise at least $ 1.2 billion and allow the company an initial market capitalization of $ 11.9 billion, based on Commission deposits for securities and foreign exchange of the company.
Affirm AFRM,
which was co-founded and is run by PayPal Holdings Inc. PYPL co-founder Max Levchin, allows customers to pay for online purchases on time. The company earns money for the end trader of a transaction when consumers use one of Affirm’s installment products, the most profitable of which offers a “0% APR” option that allows consumers to make purchases on time, without attracting interest. The company also has a “simple interest” loan option based on which it charges consumers for advance payment.
Executives expected to make Affirm public by the end of 2020, but ended up delaying the IPO after huge traces from day one, among other so-called unicorns who will be stockbrokers, such as Airbnb Inc. ABNB,
and DoorDash Inc. DASH,
For more information: after a year of impressive pandemic deals, these tech companies expect to keep it
Affirm generated revenue of $ 509.5 million in its last fiscal year, which ended in 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 previous year.
Among the brands that use Affirm for installment payment options are Peloton Interactive Inc. PTON. The manufacturer of connected exercise equipment accounted for about 28% of the company’s revenue in its last fiscal year.
See also: Five things to know about Affirm as it goes public
Affirm is one of the many players in the Buy-Now-Pay-Later space. Competitors include Afterpay Ltd. APT,
trading in Australia; Klarna, which received support from Visa Inc. V,
; and Uplift, which focused on the online travel market.
Affirm is expected to start trading on the Nasdaq on Wednesday with the symbol “AFRM. “In SEC filings, the company said it would try to sell 24.6 million shares, and the subscribers – led by Morgan Stanley, Goldman Sachs and Allen & Co. – have access to a global batch comprising 3.7 million additional shares.
IPO Affirm comes as IPO Renaissance IPO ETF,
gained 22% in the last three months and as S&P 500 SPX,
increased by 7.6% during this period.