Figure Technology Solutions Inc., a company that uses blockchain technology for credit services, along with some of its investors (like Ribbit Capital), has raised $787.5 million by selling 31.5 million shares in its initial public offering (IPO).
According to the blog post, each share is valued at $25, which was higher than what the firm initially planned. The company would have been valued at about $5.3 billion, based on the outstanding shares.
The IPO, closing Sept 12, includes 23.5 million shares from Figure and 8M from existing stockholders. The firm may offer 4.7 million more shares at IPO price to underwriters with a 30-day option to purchase. Goldman Sachs, Jefferies, and BofA Securities lead the offering, with Societe Generale, Keefe, Bruyette and Woods, Mizuho, and others as bookrunners or co-managers.
This IPO happened during a very busy week for IPO volume in the US, with other companies like Klarna Group Plc also going public. Klarna’s shares rose 15% on its first trading day after raising a $1.37 billion IPO. Cameron and Tyler Winklevoss’ cryptocurrency exchange, Gemini Space Station Inc., is also preparing to go public soon.
Figure Technology Solutions Inc., founded in 2018 by Mike Cagney (who used to run SoFi), uses blockchain technology to make loans easier and faster.
In 2024, Michael Tannenbaum joined as the CEO of the firm. Furthermore, in 2021, investors valued the firm at $3.2 billion. On September 9, Figure Technology Solutions decided to sell more shares than planned. The company offered 26.6 million shares, and its shareholders offered 4.9 million shares. They also raised the price range for each share to $20-$22, up from $18-$20.
A major investor, Stanley Druckenmiller’s Duquesne Family Office, has shown interest in purchasing up to $50 million worth of shares. Figure started by offering home equity line of credit (HELOC), which allowed people to borrow money using their home’s value.
The company also provides loans backed by cryptocurrency and runs a digital asset exchange. So far, they’ve funded over $16 billion in loans using blockchain.
The company has investors like DCM, Ribbit, Gemini Investments, and Morgan Creek Capital Management. After the IPO, Mike Cagney, the Co-Founder, will still control 68.6% of the company’s voting power because he owns special Class B shares that give him 10 votes per share.
The IPO was managed by big banks like Goldman Sachs, Jefferies, and Bank of America. However, the firm’s Class A shares will start trading on Thursday on the Nasdaq stock market with the ticker symbol FIGR.
