Affirm IPO was held on January 12, 2021 at $49 per share and AFRM stock jumped +100% ($100 per share) on the first day of trading.
On November 19, 2020 Affirm - consumer installment lending service filed to go public, herding yet another unicorn into the end-of-year IPO corral. The company planned to join DoorDash and Airbnb in filing recently, as a number of highly valued, venture-backed private companies look to float while the public markets are more interested in growth than profits.
On December 12, 2020 Affirm decided to push its IPO off until at January 2020, to let markets calm down and avoid the massive first-day "pops" Airbnb and DoorDash recently saw. Affirm Holdings will be launching its IPO on January 12. Applications for Affirm IPO already open.
- Detailed instructions how to participate in Affirm IPO (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank (Morgan Stanley, Goldman Sachs and Allen & Company in Affirm case) to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company sets an initial price and date for the stock to begin trading on a stock exchange.
Financial Indicators before Affirm IPO
Summary
The company nearly doubled its revenues last year, bringing in approximately $510 million for a fiscal year ending June 30. The most recent valuation at around $2.9 billion, but that was from April 2019.
Long story
Founded by PayPal co-founder Max Levchin, Affirm Holdings platform offers interest-free online loans. This is namely an alternative lending service that is quite different from any traditional options. The advantages include integrating stores, flexible payment schedules, no compound interest, and no late fees. This is one of the most popular startups across the globe, which works with 6,500 merchants directly, including Peloton, Expedia, and Walmart.
Affirm Holdings posted significant earnings growth ahead of the IPO. In 2019, the earnings amounted to $264.40M, while in FY 2020, which ended on June 30, it almost doubled, adding 92.70% to reach $509.50M. This trend was still there over the three months ended on September 30: in 2019, the earnings over this period were at $87.90M, while in 2020, it increased to $174M, adding 98%.
At the same time, the company's net loss amounted to $120.50M in 2019, while in 2020, it dropped to $112.6M. It was also the same for the three months ended on September 30, as the net loss dropped from $30.80M in 2019 to $15.30M in 2020. In case Affirm Holdings is able to maintain this trend and continue to expand, it might become profitable moving forward.
How to Buy Affirm Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Affirm IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Affirm shares when the company goes public via a commission-free trading app like eToro.
🚨 Detailed Instructions How to Participate in the Affirm IPO before public trading:
Below we share the instruction how to participate in the approaching Affirm IPO using Freedom Finance (Tradernet platform). This marketplace is chosen as an example because Affirm is already listed there.
* Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a very short notice for participation and account deposits also takes time for processing.
- Wait for a request to participate in the IPO — when the IPO date is defined you will get a notification (email and SMS text message) from Freedom Finance to apply for the IPO.
- Submit a request to participate in the IPO — when you get a notification that you can apply to buy shares, go to IPO section of the platform > you will see the IPO listing with the share price set by the underwriter > click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start— a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
When is the Affirm IPO date
Affirm Holdings will be launching its IPO on January 12.
What is Affirm IPO price range?
Affirm IPO price $49
We will update when the exact Affirm IPO price is know – if you want to get notified please subscribe for updates here.
What IPOs Are Coming in 2021?
Already accept applications:
- Roblox – platform to develop and maintain own games, 164M active users.
Will be available in 2021:
- Robinhood – discount stock and crypto trading app that had over 13M clients
- Coinbase – largest cryptocurrency brokerage platform (profitable).
- Bumble – dating app with 100M users where women make the first move.
- Instacart IPO
- Petco IPO
- Nextdoor IPO
- Poshmark IPO
- Playtika IPO
- Stripe IPO
Instruction How to Invest in Affirm after the IPO date (opening price)?
After the IPO you can buy Affirm stocks via a commission-free trading app like eToro on the first trading day.
- Register here
- Fund your account
- Type into the search Affirm and click “Trade”
- Choose “Buy” and enter your amount
What is the Affirm ticker (stock symbol)
Affirm's ticker is AFRM
Affirm Registration Statement on Form S-1
Affirm Registration Statement on Form S-1
Affirm IPO news
- December 12, 2020 – Affirm joins Roblox in delaying its planned 2020 IPO after monster gains from Airbnb, Doordash
- January 5, 2020 – Affirm released a new S-1/A filing. Affirm said in the updated filing that it planned to sell 24.6 million shares for $33 to $38 each.