Affirm Holdings, which offers "buy now pay later" loans for online purchases, raised the proposed deal size for its upcoming IPO on Monday.
The San Francisco, CA-based company now plans to raise $1.0 billion by offering 24.6 million shares at a price range of $41 to $44. The company had previously filed to offer the same number of shares at a range of $33 to $38. At the midpoint of the revised range, Affirm Holdings will raise 20% more in proceeds than previously anticipated, commanding a market value of $12.8 billion and an enterprise value of $12.3 billion (20.6x EV/sales).
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, GMV rose 77% to $4.6 billion, with 64% of loans facilitated through its platform taken out by repeat consumers. During that period, revenue jumped 93% to $510 million, 28% of which came from top merchant partner Peloton, and the company recorded an operating loss of $108 million (-21% margin).
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.
