This news has been received from: CNBC

All trademarks, copyrights, videos, photos and logos are owned by respective news sources. News stories, videos and live streams are from trusted sources.

Affirm Holdings Inc. website home screen on a laptop computer in an arranged photograph taken in Little Falls, New Jersey, U.S., on Wednesday, Dec. 9, 2020.Gabby Jones | Bloomberg | Getty Images

Shares of payments company Affirm soared more than 80% in its initial public offering on the Nasdaq, kicking off what's likely to be a busy season for market debuts.

The stock began trading at $90.90 per share. Affirm had priced its shares at $49 apiece, above its target range of $41 to $44 each, and seeks to raise $1.2 billion.

Founded in 2013 by PayPal co-founder Max Levchin, Affirm has become a prominent in the "buy now pay later" space that offers point-of-sale loans. The company allows customers to finance online purchases that can be paid back in monthly installments without accruing compounding interest. 

It works with around 6,500 retailers, including Peloton, Wayfair, Walmart and direct-to-consumer eyeglasses company Warby Parker. In an update to its IPO filing, Affirm said it is used by more than 6.2 million people. Affirm also partnered with Shopify last year, allowing merchants to offer installment loans on products they sell.

Affirm brought in roughly $510 million in revenue for the fiscal year ended on June 30, a 93% jump from last year, according to its filings. In the three months ending Sept. 30, revenue grew 98% year over year, while net losses fell by roughly half to $15.3 million.

Affirm makes money when they help a merchant make a sale. It also earns interest income on loans it buys from bank partners and some consumer loans. The rate they charge varies by consumers' creditworthiness, but often starts at 0%.

"Our goal is to be a viable alternative to credit cards," Levchin told CNBC ahead of the company's first trade.

Morgan Stanley, Goldman Sachs and Allen & Co were the lead underwriters for the offering. Major investors include Peter Thiel's Founders Fund, Khosla Ventures and Lightspeed Venture Funds.

Affirm's market debut could mark another successful venture for Levchin, who owns 27.5 million shares in the online lender. Following PayPal's sale to eBay in 2002, Levchin started the social application company Slide. That sold to Google in 2010 for a reported $182 million. 

Affirm, which trades under the symbol "AFRM," has made CNBC's Disruptor 50 list twice.

Subscribe to CNBC on YouTube.

Related Tags
  • Markets
  • IPO
  • Technology
  • Breaking News: Technology
  • PayPal Holdings Inc

News Source: CNBC

Tags: markets ipo technology breaking news technology holdings inc the company the company

Bucs lineman Ndamukong Suh uses Warren Buffett’s advice to navigate market turmoil

Next News:

The traders golden war is to respect your own trading plan

"The trader’s golden war is to respect your own trading plan"

Other News

  • Zoom's stock has two traders at odds as it builds on its triple-digit rally
  • Jovic starts rebuilding career in Germany after Madrid lows
  • Is the stock market open today? Here are the trading hours on Martin Luther King Jr. Day
  • New York Mets: Three Candidates To Round Out The Starting Rotation
  • Is the stock market open on Martin Luther King Jr. Day? Here are the trading hours
  • Bearish oil and Gold and Silver difficult zones. Trading opportunities in CP?
  • Vaccination for over 75s starts this Monday in France
  • Several Events Being Held To Celebrate, Honor Dr. Martin Luther King, Jr.
  • Deauville airport starts work on the new terminal
  • Massive Vaccine Drive Starts in India Despite Safety Doubts
  • Yellen to Affirm Commitment to Market-Determined Dollar: WSJ
  • Rockets look to future after trading Harden to Brooklyn
  • Intelsat Chairman David McGlade faces insider- trading suit
  • Chairman of embattled satellite operator accused of insider trading
  • Debts and other financial difficulties that await Donald Trump as he leaves the presidency – CVBJ – Latest News, Breaking News, Top News Headlines
  • New York : Debts and other financial difficulties that await Donald Trump as he leaves the presidency
  • Virgil van Dijk ‘stronger than ever’ as star gives Liverpool major boost as he starts ball work during rehab in Dubai
  • Dasha Mart Nearly Pops Out Of Her Bikini Top In Smoking-Hot Video
  • Jack Leach starts as he means to go on on England tour with six wickets in first Test vs Sri Lanka