Max Levchin’s Affirm surges in Nasdaq debut

Max Levchin’s Affirm surges in Nasdaq debut

Shares
of
lending
startup
Affirm
Holdings,

founded
by
PayPal’s
co-founder
Max
Levchin
,
soared
in
their
debut
on
Wednesday,
giving
the
company
a
market
capitalization
of
over
$22
billion.

Affirm’s
shares
opened
at
$90.90
on
the
Nasdaq,
85.5
percent
higher
than
their
upwardly
revised
initial
public
offering
(IPO)
price
of
$49
apiece.
The
firm
has
raised
$1.2
billion
in
its
IPO.

The
company
had
targeted
a
price
range
of
$41
to
$44
per
share
on
Monday,
to
sell
around
24.6
million
shares
in
its
IPO.

Affirm’s
debut
underscores
a
strong
week
for
US
IPOs,
with
at
least
eight
companies
slated
to
price
their
IPOs
this
week,
looking
to
raise
more
than
$5
billion
in
total.
It
is
expected
to
be
the
biggest
week
for
listings
in
more
than
five
years.

Founded
in
2012,
venture
capital-backed
Affirm
was
started
to
offer
small
loans
to
people
without
credit
histories
or
savings
accounts.
Over
6.2
million
consumers
have
used
the
platform
as
of
Sept.
30,
2020,
according
to
a
regulatory
filing
by
the
company.

For
the
fiscal
year
ended
June
2020,
Affirm
raked
in
$509.5
million
in
net
revenue,
with
a
net
loss
of
$112.6
million,
the
filing
showed.

Major
investors
of
Levchin’s
startup

include
Peter
Thiel’s
Founders
Fund
,
Singaporean
sovereign
wealth
fund
GIC,
venture
capital
firm
Spark
Capital
and
Fidelity
Management
and
Research
Company
LLC.

Affirm
was
valued
just
shy
of
$3
billion
at
the
time
of
its
second
last
private
fundraise
in
April
2019,
according
to
data
from
Pitchbook.

The
company
closed
the
acquisition
of
Canadian
buy-now-pay-later
(BNPL)
firm
PayBright
for
C$340
million
($266.35
million)
earlier
this
year,
the
filing
showed.

Morgan
Stanley,
Goldman
Sachs
and
Allen
&
Co
were
the
lead
underwriters
for
the
offering.


Source : Reuters Link

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