Oportun Financial, which provides loans to low and moderate income consumers with limited credit history, announced terms for its IPO on Monday.
The San Carlos, CA-based company plans to raise $100 million by offering 6.25 million shares (25% secondary) at a price range of $15 to $17. At the midpoint of the proposed range, Oportun Financial would command a fully diluted market value of $454 million. The company originally filed to raise $50 million.
Oportun was originally established in 2005 under the name Progreso Financiero, and focused on the underserved, underbanked US Hispanic community. Since 2015, it has expanded to focus on the broader "credit invisible" and mis-scored population. Most of the company's customers are located in California (63% of principal balance) and Texas (24%). Its APRs range from 20% to 67%.
The company last raised funding in 2015; the Series H round valued the company at $29.59 per share.
Oportun Financial booked $494 million in revenue for the 12 months ended June 30, 2019. It plans to list on the Nasdaq under the symbol OPRT. Barclays, J.P. Morgan, Jefferies and Keefe Bruyette Woods are the joint bookrunners on the deal. It is expected to price during the week of September 23, 2019.
