AFRM begins trading on the Nasdaq

Affirm Holdings Inc. website home screen on a laptop in a curated photograph taken in Little Falls, New Jersey, USA, Wednesday, December 9, 2020.

Gabby Jones | Bloomberg | Getty Images

Payment company actions To affirm soared 98% on its initial public offering on the Nasdaq, triggering what should be a busy season for the market debut.

The stock started trading at $ 90.90 per share and closed at $ 97.24. Affirm had evaluated his actions at $ 49 each, above its target range of $ 41 to $ 44 each.

Founded in 2013 by Pay Pal co-founder Max Levchin, Affirm has become essential in the Space “buy now pay later” that offers point-of-sale loans. The company allows customers to fund online purchases that can be paid off in monthly installments without accumulating compound interest.

It works with around 6,500 retailers, including Platoon, Wayfair, Walmart and consumer eyewear company Warby Parker. In an update to its public filing, Affirm said it is used by more than 6.2 million people. Affirm has also partnered with Shopify last year, allowing traders to offer installment loans on the products they sell.

Affirm generated about $ 510 million in revenue for the fiscal year ended June 30, a 93% jump from a year ago, according to its filings. In the three months ending Sept. 30, revenue increased 98% year-over-year, while net losses declined by about half to $ 15.3 million.

Affirm makes money when it helps a merchant make a sale. It also receives interest income on loans it purchases from banking partners and on certain consumer loans. The rate it charges varies depending on the creditworthiness of consumers, but often starts at 0%.

“Our goal is to be a viable alternative to credit cards,” Levchin told CNBC before the company’s first exchange.

Morgan stanley, Goldman Sachs and Allen & Co were the main underwriters of the offer. The main investors are the Founders Fund of Peter Thiel, Khosla Ventures and Lightspeed Venture Funds.

Affirm’s market debut could mark another successful venture for Levchin, who owns 27.5 million shares of the online lender. Following the sale of PayPal to eBay in 2002, Levchin launched the social apps company Slide. This sold at Google in 2010 for a reported amount of $ 182 million.

Affirm, which trades under the symbol AFRM, has twice made CNBC’s 50 disruptor list.

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