Buy now, pay later company Affirm may be the next FinTech to be eyeing an initial public offering, which could see it valued at a mammoth $10bn.
The lending company is reportedly in talks with Goldman Sachs on a listing, according to a report from The Wall Street Journal which cites people familiar with the matter.
However, this is still in the early stages and Affirm is not committed to pursuing the IPO and instead may look to sell itself to a “blank-check company.”
Affirm is a lending platform that enables consumers to buy products from a list of thousands of online shops, but choose to pay for the item over monthly instalments. Consumers can pick payment plans for
Despite the fears the coronavirus has placed on the financial market, it has not stopped companies pursuing IPOs.
InsurTech giant Lemonade launched publicly in June and witnessed a strong first day of trade, with shares soaring 138%. The InsurTech reached a $3bn market cap on day one.
There were a number of questions on what the listing price would be for Lemonade, placing it between $23 and $28, when the IPO launched, the price was $29 per share. The first trading day saw this price rise to $50. According to MarketWatch, the price of shares has fluctuated over the month and even reaches a high of $85. At the time of writing, the price is $61.40.
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