FinTech Acquisition, a blank check company formed by management of The Bancorp to acquire a financial technology business, announced terms for its IPO on Friday. The New York, NY-based company plans to raise $100 million by offering 10 million units for $10 each. At that price, FinTech Acquisition would command an initial market value of $137 million.
The company is led by CEO Daniel Cohen. Cohen currently serves as Chairman of The Bancorp, which trades on the NASDAQ under the symbol TBBK with a market cap of about $375 million. FinTech's primary shareholders include Daniel Cohen (22% post-IPO stake), Betsy Cohen (3%) and Frank Mastrangelo (1%).
Financial technology appears to be a hot sector, as evidenced by the recent success of LendingClub (LC), up over 50% from its upsized $870 million offering. Next week should see another financial technology firm, On Deck Capital (ONDK), test investors' appetite for these companies.
FinTech Acquisition, which was founded in 2014, plans to list on the NASDAQ under the symbol FNTCU. FinTech Acquisition initially filed confidentially on September 15, 2014. Cantor Fitzgerald is the sole bookrunner on the deal. No pricing date has been set.
