Confirmed late Tuesday, it offered 24.6 million Class A shares at $ 49 per share, well above its recently raised target range of $ 41 to $ 44 per share.The original range was $ 33 to $ 38.
The IPO price values the company above $ 12 billion when it comes to striking stocks and stock options.
Affirm had fiscal 2020 revenue of $ 509.5 million, up 93 percent from a year ago, while losses of $ 112.6 million for the September quarter.Revenue was $ 174 million, up about 98 percent from the same period a year ago. This page lost $ 15.3 million.
Affirm’s strong growth and role as a consumer financial services provider to a broader range of popular retailers have made the IPO a hot deal.About 30% of the company’s revenue comes from bike companies that Connect together
(PTON). Other customers are
Nordstrom TheRealReal Eddie Bauer
Bonobos and Purple and others.
After the offering, consumer finance companies will have a total of 246.4 million shares outstanding, assuming the terms are applied. The “green shoes” of the deal are divided equally into Class A shares and Class B shares (Class B shares each have 15 votes, but are automatically converted to Class A shares on the 7th anniversary of the term “green shoes”. The IPO) throws stock options in a wide range of stock options and restricted stock options, and all diluted stocks count the balloon to roughly 318 million shares at the offering price.The company is worth $ 12.1 billion, or roughly. $ 15.6 billion on all cuts criteria
Founder and CEO Max Levchin will have 19.8% voting power in Affirm after the offering. (Totally undiluted), with a $ 1.4 billion stake, e-commerce platform company
(SHOP) holds approximately 8% of the company, which has a share value of just $ 1 billion.The venture capital firms with stakes between 5% and 10% each include Jasmine Ventures, Lightspeed, Khosla Ventures and Founders Funds.
Payment companies such as Square (SQ) and PayPal (PYPL) trade locally approximately 8 to 10 times the 2021 revenue estimate, but not as fast as Affirm if they can continue to grow at a rate. Close to 100%, the company would have revenue of $ 1 billion in fiscal year 2021 and close to $ 2 billion in fiscal 2022.If so, the valuation could approach $ 20 billion based on peer multiplication. We’ll find out what optimism investors look like when stocks start trading on Wednesday.
This offer, led by Morgan Stanley, Goldman Sachs and Allen & Co. Affirm, will be traded on the Nasdaq under the ticker symbol AFRM.
Write to Eric J. Savitz at email@example.com.