Feb, 2021 - By WMR
On January 13, 2021, the financial technology company, Affirm, inaugurated its public trade on NASDAQ stock exchange at a rate of US$ 49 per share. The stock reached US$ 97 per share at the end of the day.
Affirm, a financial trading company, has opened its doors for public on Wednesday, offering its IPO at US$49/share. The company has proposed a total of more than 24 million shares to sale. On its first-day, Affirm generated about US$ 1.2 billion in terms of revenue. The performance has exceeded the anticipated numbers before trading started. Affirm was founded in 2012 by Mr Max Levchin who also co-founded the Paypal platform.
Affirm is a money-lender that has been providing loans to online consumers on a differing interest rates since 2012. The company provides loan to merchants that don’t have any transactional records or are non-prime consumers with a flexible pay-back procedure. After the over-whelming opening-day response of Affirm IPO, the detractors from the traditional IPO methods will certainly reconsider this idea. It has introduced the ‘Buy now, Pay later’ industry which is expected to expand in the upcoming years. That can be the reason most of consumers are willing to be shareholders in Affirm.
The recent success of Airbnb and DoorDash is responsible for reinforcing the performance of Affirm. The e-commerce company, Shopify, is one of the prime investors in Affirm. Formerly, Shopify had about US$ 20 million shares in Affirm but now those shares are at a worth of US$ 2 billion. Most of the consumers prefer Affirm loans because they will get multiple financial options and a separate plan for non-prime consumer.
More public entries are expected in the first quarter of 2021. Affirm IPO has set the roadmap for the new debutants to work in that direction and expect better outcomes for their shares.