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Affirm aims at $9 billion valuation in U.S. SEC filing

written by Bella Palmer
ipo

The company plans to offer 24.6 million shares of class A common stock at an anticipated range of $33 to $38

Affirm Holdings, Inc. has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for a much-anticipated initial public offering (IPO) that could raise as much as $934.8 million, and could result in a total valuation of over $9 billion, according to an S-1/A filing on Tuesday.

The buy now, pay later (BNPL) company plans to offer 24.6 million shares of class A common stock at an anticipated IPO price in the range of $33 to $38. It reported a net loss of $15.3 million on $174 million in revenue for the three months ending Sept. 30, 2020, according to the filing, which noted that more than 6,500 merchants use the company’s platform.

The news comes as the U.S. market for IPOs experienced a banner year in 2020 even with the pandemic. Connected-commerce firms led the way in many cases, frequently enjoying formidable IPO pricing and even larger first-day gains as investors came to the realisation that the digital shift triggered by the pandemic would likely never completely reverse.

In December, unnamed sources in a published report said Affirm had decided to delay its IPO until at least this month, apparently to allow markets to settle down and eschew the large first-day gains that DoorDash and Airbnb recently experienced. And in January, Affirm announced it had completed its acquisition of PayBright of Toronto in a $264 million deal.

BNPL still comprises a small part of the market – according to PYMNTS data, it was used in just 6.4 percent of total consumer purchases in September. However, usage is much higher among millennials – particularly older millennials – and its use has sizably increased as of March.

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