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Reported IPO Price Above Target to Raise $ 1.2 Billion



After the delay, payment technology company Affirm Holdings Inc. is about to get paid.

The company, which lets people shop and pay over time, set an initial public offering price of $ 49 per share late Tuesday, according to reports from Bloomberg and Reuters. The price is $ 5 per share, which is more than the proposed range and will increase by at least $ 1.2 billion and give the company an initial market capitalization of $ 11.9 billion, according to filings with Affirm’s Securities and Exchange Commission.

Confirm AFRM
,
The company, which was co-founded and led by PayPal Holdings Inc.̵

7;s PYPL co-founder Max Levchin, allows customers to pay for online purchases at any time.The company raises money from the end of merchant transactions when consumers use Affirm installment products. This is the most profitable product with a “0% APR” option that allows consumers to shop at any time without incurring interest. “Simple Interest”, which charges the consumer for an advance payment.

Executives were expected to make public announcements in late 2020, but ended up delaying the IPO after day one, making a big appearance among other so-called unicorns, including Airbnb Inc.
+ 8.55%
And DoorDash Inc. DASH
+ 14.96%.

For more information: After an impressive year of outbreaks, these tech companies are expected to continue.

Affirm generated $ 509.5 million in revenue during the most recent fiscal year that ended in June, up from $ 264.4 million a year earlier.The company posted a net loss of $ 112.6 million compared to a loss of $ 120.5 million in the same period a year earlier.

Among the brands using Affirm for their installment options are Peloton Interactive Inc. PTON, maker of connected fitness equipment, accounted for about 28% of Affirm’s revenue last fiscal year.

See Also: Five Things To Know About Affirm When Going Public

Confirm to be one of the few players in the Buy Now area – Pay Later, competitors include Afterpay Ltd. APT,
-1.42%,
Which trades in Australia, Klarna is sponsored by Visa Inc. V,
-1.89%
; And Uplift, which focuses on the online travel market.

Affirm now expects to begin trading on Wednesday on the Nasdaq with the symbol “AFRM.” In the SEC filing, the company said it would seek to sell its 24.6 million shares and its underwriter led by MoA. Morgan Stanley, Goldman Sachs and Allen & Co. had access to aggregate data, which included 3.7 million additional shares.

Affirm’s IPO comes as a Renaissance IPO ETF IPO.
+ 3.37%
It has earned 22% over the past three months and as a S&P 500 SPX.
+ 0.04%
7.6% increase in that range


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