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