Affirm ecommerce lending platform raises $ 41 to $ 44 range ahead of $ 1 billion IPO

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Affirm Holdings, which offers “buy now, pay later” loans for online purchases, on Monday increased the size of the proposed transaction for its next IPO.

The San Francisco, Calif.-Based company now plans to raise $ 1.0 billion by offering 24.6 million shares in a price range of $ 41 to $ 44. The company had previously filed to offer the same number of shares in a range of $ 33 to $ 38. At the midpoint of the revised range, Affirm Holdings will raise 20% more revenue than expected, with a market value of $ 12.8 billion and an enterprise value of $ 12.3 billion (20.6x EV / sales).

Affirm’s financing platform consists of three main elements: a consumer point-of-sale payment solution that enables payment for purchases in fixed amounts, merchant commerce solutions and a consumer-centric application. As of September 30, 2020, over 6.2 million consumers have completed approximately 17.3 million transactions with over 6,500 merchants on the Affirm platform. In the fiscal year ended June 30, 2020, GMV grew 77% to $ 4.6 billion, with 64% of loans facilitated through its platform taken by loyal consumers. During that time, revenue jumped 93% to $ 510 million, of which 28% came from leading merchant partner Peloton, and the company recorded an operating loss of $ 108 million (21% margin) .

Affirm Holdings was founded in 2012 and reported $ 596 million in revenue for the 12 months ended September 30, 2020. It plans to list on Nasdaq under the symbol AFRM. Morgan Stanley, Goldman Sachs, Allen & Company, RBC Capital Markets, Credit Suisse and Barclays are the associated bookkeepers in the transaction. Its price is expected during the week of January 11, 2021.

The article Affirm e-commerce lending platform increases range from $ 41 to $ 44 before the billion dollar IPO.

Disclosure of investments: The information and opinions expressed in this document have been prepared by Renaissance Capital research analysts and do not constitute an offer to buy or sell any securities. Renaissance Capital’s Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS) or separately managed institutional accounts may have investments in securities of the companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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