Confirm IPO prices above target to raise $ 1.2 billion


After a delay, payment-technology company Affirm Holdings Inc. Gonna pay.

According to reports from Bloomberg News and Reuters, the company, which bought people goods and paid them over time, priced its initial public offer at $ 49 a share late Tuesday. The price is $ 5 more than the top of its proposed range, and will produce at least $ 1.2 billion and give the company an initial market capitalization of $ 11.9 billion based on Affirm Securities and Exchange Commission filings.

Confirm AFRM,
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Which was co-founded and is led by PayPal Holdings Inc. Max Levchin, co-founder of PYPL, allows customers to pay for online purchases on time. The company makes money on the merchant end of the transaction when consumers use one of Affirm’s installment products, the most attractive of which offers the “0% APR” option that lets consumers shop over time without interest. is. The company also has a “simple interest” loan option under which it charges consumers for upfront payment.

Officials were expected to take Affirm public in late 2020, but Airbnb Inc. The IPO was delayed after the first day’s pop after other so-called unicorns such as ABNB went public.
+ 8.55%
And dorash dash, Inc.
+ 14.96%.

For more: After a year of impressive epidemic offerings, these tech companies hope to keep it running

Affirm generated $ 509.5 million in revenue during its latest fiscal year, which ended in June, up from $ 264.4 million a year earlier. The company reported a net loss of $ 112.6 million, compared to a loss of $ 120.5 million in the year-ago period.

Piloton Interactive Inc. among brands using Affirm for installment-payment options. Is PTON. The manufacturer of connected exercise equipment accounted for about 28% of Affirm’s revenue in its last fiscal year.

See also: Five things to know about Affir as soon as it is public

Affirm is one of several players in the now-paid-for-after position. Competitors include Afterpay Limited Apt,
-1.42%,
Who trades in Australia; Karlna, supported by Visa Inc. V,
-1.89%
; And Evolution, which has focused on the online-travel market.

Trading on the Nasdaq exchange with the ticker symbol “AFRM” is expected to begin on Wednesday. “In SEC filings, the company said it would try to sell 24.6 million shares, and the underwriters – led by Morgan Stanley, Goldman Sachs and Allen & Co. – have access to an annotation holding an additional 3.7 million shares.

Affirm’s IPO Renaissance IPO comes as ETF IPO,
+ 3.37%
There has been an increase of 22% in the last three months and as the S&P 500 SPX,
+0.04%
It has grown by 7.6% during that period.

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