Following a delay, the payment technology company Affirm Holdings Inc. about to be paid.
According to reports from Bloomberg News and Reuters, the company, which allows people to buy goods and eventually pay, priced its initial public offering at $ 49 a share on Tuesday. The price is $ 5 per share more than the top of its proposed range, and will yield at least $ 1.2 billion and give the company an initial market capitalization of $ 11.9 billion, based on documentation from the Securities and Exchange Commission of Affirm.
Confirm AFRM,
co-founded and led by PayPal Holdings Inc. PYPL, co-founder Max Levchin, enables customers to pay for online purchases over time. The company earns money at the end of a transaction when consumers use one of Affirm’s installment products, the most profitable of which offers a 0% option that allows consumers to make purchases over time without accruing interest. The company also has a ‘simple interest’ loan option under which it charges consumers for the prepayment.
Executives are expected to announce to the public by the end of 2020, but will eventually delay the IPO after a major one day became known among other so-called unicorns, such as Airbnb Inc. ABNB,
and DoorDash Inc. DASH,
For more: after a year of impressive pandemic offerings, these tech companies expect to keep it going
Affirm generated $ 509.5 million in revenue in the most recent financial year, which ended in June, compared to $ 264.4 million a year earlier. The company recorded a net loss of $ 112.6 million, compared to a loss of $ 120.5 million in the previous year.
Among the brands Affirm uses for installment options is Peloton Interactive Inc. PTON. The manufacturer of connected exercise equipment accounted for approximately 28% of Affirm’s revenue in the last financial year.
See also: Five things you need to know about Confirm as it is revealed
Affirm is one of a number of 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 exchange on Wednesday with the symbol “AFRM. “In SEC documentation, the company said it wanted to sell 24.6 million shares, and underwriters – led by Morgan Stanley, Goldman Sachs and Allen & Co. – has access to a total offering of 3.7 million shares.
Affirm’s IPO is the Renaissance IPO ETF IPO,
has increased by 22% over the past three months and as the S&P 500 SPX,
increased during the range of 7.6%.