Affirm Boosts Price Range for IPO, Targets Over $10B in New Filing

UTC by Kofi Ansah · 3 min read
Affirm Boosts Price Range for IPO, Targets Over $10B in New Filing
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In November 2020, Affirm announced that revenue for the fiscal year that ended September 30 had seen a substantial rise year over year.

Affirm Holdings Inc., in a filing with the Securities and Exchange Commission (SEC) on January 11, announced that the firm is raising the expected pricing range of its initial public offering (IPO). The payment technology and lending startup is now targeting a valuation of over $10 billion in its stock market launch. 

The firm made the announcement after an upward revision in the price range, which according to experts, is a give-away for a very busy IPO season for the United States capital markets. Affirm previously anticipated a share of its stock going for $33 to $38 but now plans to price its stock between $41 to $44 a share, raising up to $1.08 billion from the sale of 24.6 million shares of its common stock through the IPO. 

The company, founded by Max Levchin, co-founder of PayPal Holdings Inc (NASDAQ: PYPL) was expected to enter the public scene in the latter stages of 2020, and planned to be listed on Nasdaq under the ticker “AFRM”. Affirm reportedly postponed those plans and delayed its IPO into this year, following Airbnb Inc stock’s high flying performance on its first day of trading. Reports suggest that the lending startup decided to move ahead with its planned IPO following the Renaissance IPO ETF IPO gains of 20% on the year as well as the 10% increase in value of the S&P 500 SPX.

The Silicon Valley startup was founded in 2012 to give people without any savings account or credit history access to small loans. The firm also offers monthly installment payments and easy financing to shoppers online, enabling them to make purchases and pay later in installments.

Affirm, according to PitchBook, was valued under $3 billion in its last private funding round. The company announced in November 2020 that revenue for the fiscal year that ended September 30 had seen a substantial rise year over year.

According to PYMNTS, a website that provides online coverage of payments news and the latest industrial trends, the Buy Now, Pay Later (BNPL) market has seen a rise which is fueled by the pandemic. Interest in BNPL among millennials and younger shoppers has increased as compared to previous years. 

Affirm, back in November partnered with Inntopia, a travel industry eCommerce platform in a bid to extend its BNPL option into the hotel industry. The partnership gave clients the option of an installment plan that can be activated during Inntopia’s checkout process for room reservations as well as other purchases over $50. 

The company also partnered with digital home services marketplace HomeAdvisor, a month later. HomeAdvisor is a subdivision of ANGI Homeservices, with the parent company handling over 25 million household projects annually. 

Affirm’s offering is being led by Morgan Stanley, Allen & Co and Goldman Sachs.

Business News, IPO News, Market News, News, Wall Street
Kofi Ansah
Author Kofi Ansah

Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

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