Affirm Holdings, which offers "buy now pay later" loans for online purchases, announced terms for its IPO on Tuesday.
The San Francisco, CA-based company plans to raise $873 million by offering 24.6 million shares at a price range of $33 to $38. At the midpoint of the proposed range, Affirm Holdings would command a fully diluted market value of $10.6 billion.
Affirm's financing platform comprises three core elements: a point-of-sale payment solution for consumers which allows payment for purchases in fixed amounts, merchant commerce solutions, and a consumer-focused app. As of September 30, 2020, more than 6.2 million consumers have completed approximately 17.3 million transactions with over 6,500 merchants on Affirm's platform. During the fiscal year ended June 30, 2020, $4.6 billion of merchandise was purchased through its platform, and the company recorded revenue of $510 million and an operating loss of $108 million.
Close peer Upstart Holdings (UPST), an online consumer lending platform that uses the same bank partner as Affirm for loan originations, went public in mid-December and was up roughly 150% from its offer price during intraday trading on Tuesday.
Affirm Holdings was founded in 2012 and booked $596 million in revenue for the 12 months ended September 30, 2020. It plans to list on the Nasdaq under the symbol AFRM. Morgan Stanley, Goldman Sachs, Allen & Company, RBC Capital Markets, Credit Suisse and Barclays are the joint bookrunners on the deal. It is expected to price during the week of January 11, 2021.
