Affirm, a Fintech providing point of sale credit services for consumers bumped up its initial public offering (IPO) price once again – now set at $49 a share. The price increase was due to overall demand.
The goal of Affirm is to be a viable alternative to credit cards that tend to gouge customers with excessively high-interest rates. Affirm combines convenience with better interest rates available when the customer is making a purchase. Founded by tech billionaire Max Levchin – who co-founded PayPal, the company believes that if they treat customers better they will become a success. So far, so good as Affirm now claims over 6.2 million consumers having completed 17.3 million transactions with over 6,500 merchants on Affirm’s platform.
Affirm will raise approximately $1.2 billion in the public offering.
Affirm is offering 24,600,000 shares of its Class A common stock. The shares will trade on the Nasdaq under the symbol “AFRM” and the offering is expected to close on January 15, 2021, subject to customary closing conditions.
In addition, Affirm has granted the underwriters a 30-day option to purchase up to an additional 3,690,000 shares of Class A common stock at the initial public offering price, less underwriting discounts and commissions.
Update: Shares in Affirm immediately rocketed higher in early trading. As of this moment, Affirm is trading at around $94/share – not quite a double but the day is not yet over.