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- Affirm priced its shares at $49 at the company’s initial public offering on Tuesday.
- The offering is expected to raise $1.2 billion, giving the fintech installment lender a valuation close to $12 billion.
- Affirm lifted its price range on Monday to $41 to $44, from $33 to $38.
- Affirm is set to trade on the Nasdaq Global Select Market under the ticker “AFRM.”
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Affirm Holdings, Inc. announced on Tuesday that it priced its IPO at $49 per share, coming in slightly above the most recently marketed price range of $41 to $44, and well above the initial expected range of $33 to $38 per share.
The San Francisco-based provider of installment loans to online shoppers now expects to raise $1.2 billion when it begins trading on Wednesday under the ticker ‘AFRM,’ according to a regulatory filing.
This gives the firm an $11.9 billion valuation, based on common stock outstanding, and around a $15 billion valuation on a fully-diluted basis.
Affirm is the first of several companies set to go public this week. The secondhand luxury goods company Poshmark, pet supply retailer Petco Animal Supplies, mobile game developer Playtika, and auto service supply company Driven Brands are all set to go public within the next few days.
The streak of public debuts continues the IPO boom from 2020, which saw one of the hottest years on record, led by listings from Airbnb, Snowflake, Palantir, and DoorDash. US IPOs raised a record $156 billion in 2020, according to Bloomberg data.
Affirm Holdings, Inc. was founded in 2012 by PayPal co-founder Max Levchin. Since then, the pay-over-time startup raised about $1.5 billion in funding from investors, including Durable Capital Partners, GIC, Thrive Capital, and Spark Capital, per Crunchbase.
Revenue at Affirm has been accelerating, up 98% year-over-year in the company's most recent September 2020 filing. Affirm is reliant on one merchant, Peloton, for some 30% of its revenue. The company's net loss narrowed to $15.3 million from $30.8 million in its most recent quarter.
Affirm's IPO was led by Morgan Stanley, Goldman Sachs, and Allen & Co. Its shares are expected to begin trading Wednesday on the Nasdaq under the ticker AFRM.