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Affirm Holdings Inc, a US provider of installment loans to online buyers, said on Wednesday it had sold shares in its initial public offering (IPO) at $ 49 each, above its target range, to raise $ 1.2 billion.
Affirm said it had offered 24.6 million shares of its Class A shares, and that shares would have to trade on the Nasdaq later that day under the symbol “AFRM”.
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Affirm, founded by co-founder of PayPal Holdings Inc, Max Levchin, plans to sell 24.6 million shares at a target price of between $ 41 and $ 44 each. The company raised its share offering Monday from $ 33 to $ 38 per share.
The IPO, the largest U.S. listing to date in 2021, indicates that investors’ appetite for new stocks remains strong after a stellar 2020, which was the strongest stock market in two decades.
Levchin founded Affirm in 2012 to offer easily accessible financing that is mostly aimed at young online buyers who repay monthly. The company had a turnover of $ 174 million in three months to the end of September 2020, 98% more than in the previous year. Its net losses decreased to $ 15.3 million compared to $ 30.7 million. As of June 2020, Affirm had $ 1.1 billion in debt.
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In addition to Levchin, the largest investors are Affirm Peter Thiel’s Founders Fund, venture capital firms Khosla Ventures and Lightspeed Venture Funds, and Canadian e-commerce firm Shopify Inc.
Morgan Stanley, Goldman Sachs and Allen & Co are the main underwriters of Affirm’s offering.
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(Reporting by Joshua Franklin in Miami and Chibuike Oguh in New York; additional reporting by Maria Ponnezhath; editing by Chris Reese, Christopher Cushing and Sherry Jacob-Phillips)