Shares of Affirm Holdings (AFRM) were trading $91.78 in the financial technology company’s first day of activity on Nasdaq, up 87% from the initial public offering price of $49 and up from the first trade at $90.90.
That IPO price was higher than the targeted range, and the payment-technology company raised $1.2 billion. Affirm had boosted the target range Monday to $38 from $33. Affirm sold 24.6 million common shares in the offering.
At the IPO price, Affirm was valued at $11.9 billion based on the outstanding shares listed in its regulatory filings, according to Bloomberg. The company’s fully diluted valuation, including options and restricted stock units, was about $15 billion.
“Legacy payment options, archaic systems, and traditional risk and credit underwriting models can be harmful, deceptive, and restrictive to both consumers and merchants. They are not well-suited for increasingly digital and mobile-first commerce, and are built on legacy infrastructure that does not support the innovation required for modern commerce to evolve and flourish,” the company said in its IPO prospectus.
“Our platform addresses these problems. Today, it comprises three core elements: a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app.”
Further, “our point-of-sale solution allows consumers to pay for purchases in fixed amounts without deferred interest, hidden fees, or penalties. We empower consumers to pay over time rather than paying for a product entirely upfront. This increases consumers’ purchasing power and gives them more control and flexibility. Our platform facilitates both true 0% APR payment options and interest bearing loans,” Affirm said.