Thursday, March 30, 2023

Online lender claims valued at $ 9.2 billion in scheduled IPO

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Affirm, which provides installment loans to online shoppers, seeks to raise up to $ 934.8 million during an IPO, signaling that last year’s record lists continue until 2021.

The San Francisco-based company said in a filing Tuesday that it plans to sell 24.6 million shares for $ 33 to $ 38 each. With the so-called green shoe shares, it offers 28.2 million shares, according to the file.

At the top of the range, Affirm is said to have a market value of $ 9.22 billion based on the outstanding shares listed in its filing. Including employee stock options and restricted stock units, Affirm is said to be worth more than $ 11 billion, according to the filing.

Its value could still change following discussions with potential investors on the roadshow for its IPO. The list is expected later this month.

Affirm tracks consumer tech companies, most notably Airbnb. and DoorDash Inc. which propelled IPOs on the US stock exchanges last year to a record high of more than $ 179 billion. Affirm was scheduled to go public in December, but delays by the U.S. Securities and Exchange Commission have delayed its listing, people familiar with the matter told Bloomberg News.

More than 6,500 traders use Affirm’s platform, according to its prospectus filed with the US Securities and Exchange Commission. After selecting their purchases, buyers can choose a schedule to pay them at an annual interest rate of 0% to 30%, according to Affirm’swebsite.

For the third quarter, Affirm recorded a net loss of $ 15 million on revenue of $ 174 million, compared with a loss of $ 31 million on revenue of $ 88 million during the same period in 2019, according to its filing.

Home exercise company Peloton Interactive was Affirm’s largest business partner by far, accounting for 30% of its total third quarter revenue. Its top 10 merchants, including Peloton, produced about 37% of Affirm’s revenue during the period, creating the risk that its business would be affected by the loss of one of those partners, according to the filing.

To affirm was founded in 2012 by Max Levchin, who also co-founded PayPal. Levchin is the company’s largest shareholder, according to the filing. Other large owners include Khosla Ventures, Founders Fund, Lightspeed Venture Partners and Shopify. The company said its Class B shares will carry 15 votes each, while the Class A shares sold in the IPO will have one vote each.

The offer is led by Morgan stanley, Goldman Sachs. and Allen & Co. Affirm plans to list its shares on the Nasdaq Global Select Market under the symbol AFRM.

More to read absolutely technological coverage of Fortune:


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