Blockchain lender Figure Technologies is aiming for a valuation of up to $4.13 billion in its upcoming initial public offering (IPO), signaling renewed investor confidence in the crypto space. This move comes amidst growing regulatory clarity and increased institutional adoption of digital assets, fueled by successful debuts from companies like Bullish and Circle.
Figure's IPO Details
Figure and its existing investors plan to offer 26.3 million shares at a price range of $18 to $20 per share, potentially raising up to $526.3 million. This IPO reflects the resurgence of interest in crypto-related companies, buoyed by positive market sentiment and regulatory developments.
Market Context and Competitors
Figure's IPO coincides with roadshows launched by other prominent fintech companies, including Swedish fintech giant Klarna and Gemini, the cryptocurrency exchange backed by the Winklevoss twins. This activity indicates a broader trend of companies seeking to capitalize on the current favorable market conditions.
Figure's Business Model and Performance
Co-founded in 2018 by Mike Cagney, Figure operates a blockchain-native platform facilitating lending, trading, and investing in consumer credit and digital assets. The company boasts a significantly faster home equity loan funding process, averaging 10 days compared to the industry average of 42 days. Impressively, Figure reported a profit of $29 million for the first six months of the year, a considerable turnaround from the $13 million loss in the same period last year.
Expert Opinions
Josef Schuster, CEO of IPOX, believes that the IPO pipeline for well-structured and compliance-focused players will remain active, especially with the current administration's support for the crypto space. Jeff Zell, senior research analyst at IPO Boutique, highlights the patience of investors in this space, driven by the long-term potential and the clearing of regulatory hurdles.
Goldman Sachs, Jefferies, and BofA Securities are the lead underwriters for the Figure IPO.