Figure
Technologies filed paperwork seeking a valuation of up to $4.13 billion in its
upcoming initial public offering (IPO), making it the third major fintech
company to announce plans to go public on Wall Street this week.
The
blockchain-based lender has revealed it plans to sell 26.3 million shares at
$18 to $20 each, potentially raising $526.3 million. Figure joins Swedish
buy-now-pay-later giant Klarna and cryptocurrency exchange Gemini in
launching investor roadshows this week, signaling renewed appetite for fintech
IPOs.
“With
the current administration strongly supportive of the space, the pipeline is
likely to remain active for well-structured, compliance-forward players,”
said Josef Schuster, CEO of IPOX, quoted by Reuters.
New US Regulations Provide
Incentives
Figure
operates what it calls a blockchain-native platform for consumer lending and
digital asset services. The company, co-founded in 2018 by entrepreneur Mike
Cagney, claims it can fund home equity loans in just 10 days compared
to the industry standard of 42 days.
The timing
reflects broader momentum in crypto markets. Recent regulatory clarity and
strong inflows into cryptocurrency exchange-traded funds have boosted
institutional adoption of digital assets. Successful public debuts by crypto
exchange Bullish and stablecoin issuer Circle have encouraged other blockchain
companies to test investor appetite.
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Figure Technologies
Targets September IPO After Profit Turn
Figure’s
financial performance has improved dramatically. The company posted a $29
million profit for the six months ending June 30, a sharp turnaround from
the $13 million loss during the same period last year.
“Investors
in this space tend to be patient because they see the long-term potential, especially
with regulatory hurdles starting to clear and adoption continuing to
grow,” said Jeff Zell, senior research analyst at IPO Boutique.
The company
will list on the Nasdaq under the ticker symbol “FIGR.” Goldman
Sachs, Jefferies and Bank of America Securities are serving as lead
underwriters for the offering.
Fintechs Seek Fresh
Capital
This week’s
trio of fintech IPO announcements suggests Wall Street’s appetite for financial
technology companies is rebounding after a prolonged drought. The sector
had largely avoided public markets during the past two years as rising interest
rates and regulatory uncertainty dampened investor enthusiasm.
Figure’s
blockchain focus sets it apart from traditional fintech companies. The platform
handles everything from consumer credit to digital asset trading, positioning
itself at the intersection of traditional finance and cryptocurrency markets.
The
company’s rapid loan processing capabilities have become a key selling point.
While most home equity loans take more than a month to complete, Figure’s
technology-driven approach cuts that timeline to roughly a week and a half.
This article was written by Damian Chmiel at www.financemagnates.com.
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