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Affirm Holdings Inc, an American supplier of installment loans to online buyers, said on Wednesday that it sold shares in its initial public offering (IPO) for $ 49 each, above its target, to raise $ 1.2 billion.
Affirm said it offered 24.6 million Class A common shares, and that the shares are expected to start trading on Nasdaq later in the day under the symbol “AFRM”.
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Affirm, founded by PayPal Holdings Inc co-founder Max Levchin, planned to sell 24.6 million shares at a target price range between $ 41 and $ 44 each. The company raised its stock offering from a range of $ 33 to $ 38 per share on Monday.
The IPO, the largest listing in the United States so far in 2021, signals that investors’ appetite for new shares remains robust after a stellar 2020, which was the strongest IPO market in two decades.
Levchin founded Affirm in 2012 to offer easy-to-access financing aimed primarily at young online shoppers, who pay in monthly installments. The company generated revenue of $ 174 million in the three months ending September 2020, an increase of 98% over the previous year. Its net losses decreased to $ 15.3 million, compared to $ 30.7 million. As of June 2020, Affirm had debts of $ 1.1 billion.
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In addition to Levchin, Affirm’s main investors include Peter Thiel’s Founders Fund, venture capital firms Khosla Ventures and Lightspeed Venture Funds and Canadian e-commerce company Shopify Inc.
Morgan Stanley, Goldman Sachs and Allen & Co are the main subscribers to Affirm’s offering.
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(Reporting by Joshua Franklin in Miami and Chibuike Oguh in New York; Additional reporting by Maria Ponnezhath; Editing by Chris Reese, Christopher Cushing and Sherry Jacob-Phillips)