Figure Takes in $787 Million After Pricing IPO at $25 Per Share
Blockchain-based lender Figure Technology Solutions has increased the pricing of its initial public offering (IPO) to $25 per share.
That new figure, announced late Wednesday (Sept 10), is above an earlier pricing of $20 to $22 per share. The company sold 31.5 million shares, raising $787 million and giving it a valuation of $5.3 billion.
Founded in 2018, Figure initially offered home equity lending but has since established what it calls a vertically integrated model that weaves together origination, marketplace distribution and capital markets execution.
The company’s securities filing explains its plans to branch out into a broader range of credit products, while also developing marketplaces for digital assets and stablecoins. Management argues that the combination of artificial intelligence (AI)-driven automation and blockchain’s transparency could do away with inefficiencies from lending markets while delivering faster, more accessible credit.
“The infrastructure supporting capital markets today is fragmented and operates on legacy systems which employ antiquated processes for loan approvals and transaction processing. This creates process and cost inefficiencies in serving consumer credit markets and limits the development of alternative marketplaces,” the company said in the filing.
“Furthermore, the manual elements underpinning the records of ownership and transfer of financial and real assets constrain liquidity, maintain elevated costs and are error-prone.”
The company’s IPO is happening amid the rising popularity of the digital asset space, boosted by the arrival of a pro-crypto presidential administration in the U.S. Since Donald Trump took office earlier this year, investors have embraced the crypto sector, with firms such as Bullish and Circle enjoying successful public listings this summer.
Circle’s debut, PYMNTS wrote in June, marked more than a successful fundraising event, but was rather a sign of a larger “cultural and economic shift.”
“For years, cryptocurrencies have lived at the margins of institutional finance, oscillating between hype cycles and regulatory crackdowns,” that report said. “With Circle’s entry into the public market, a new chapter looks set to begin.”
Other companies in the industry are also planning their own market debuts. Gemini, the crypto exchange run by the billionaire Winklevoss twins, said last week it is aiming for a $2.1 billion valuation when it goes public but has reportedly since raised that target to $3.2 billion.
And earlier this week, cryptocurrency asset manager CoinShares revealed plans to enter the U.S. stock market via a special purpose acquisition company merger. That company is already listed in Sweden, but would delist from that market following its listing in the U.S.
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