Fintech lender nearly doubles IPO on its first day of business


When the writing was on the wall Voice (NASDAQ: AFRM) Announced the terms of its public debut. While the company may not have a household name, it is the brainchild of Max Levchin, one of the co-founders of Payment Processing PinPin Paypal (NASDAQ: PYPL). The online lender offers financing and installment loans for customers on e-commerce sites.

After initially planning to price its shares between $ 33 and $ 38, strong investor interest increased that range from $ 41 to $ 44 per share. On the eve of his debut, Affirm placed the high end of his stock price range above $ 49. Even this was not enough to dampen the enthusiasm of investors.

Image Source: Affirm

The company’s initial public offering (IPO) followed a pattern, played out repeatedly at the end of 2020, as investors broke shares at a dizzying rate. The stock began trading at $ 90.90 at about 12:20 PM EST, nearly 86% above the offer price, and never looked back. The stock ended the day at $ 97.24, more than 98% off its offering price.

Confirmation of offer of 24.6 million shares to investors If the underwriters exercised their right to sell an additional 3.69 million shares, the offering could be worth $ 1.38 billion, giving the company a value of approximately $ 23 billion.

For the fiscal year ended June 30, 2020, by 92% year over year, Affirm reported revenue of $ 509 million. At the same time, the company was able to reduce its net loss to $ 113 million, a slight improvement from the $ 120 million loss in the prior year. Revenue growth accelerated in the first three months of FY 2020, with revenues that grew 98% per year to $ 174 million. The company reduced its red ink by half to $ 31 million in the prior-year quarter, with a net loss of $ 15 million.

It is important to note that Peloton interactive (Nasdaq: PTON) Affirm has the largest clientele, representing 30% of its revenue in the most recent quarter.

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