Blend Labs – the company that provides front-end white label interfaces for legacy financial institutions seeking to modernize their online offerings, has filed to raise $340 million in an IPO.
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- Detailed instructions how to participate in Blend (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 (Goldman Sachs/ Allen & Co./ Wells Fargo Securities in Blend Labs 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 with underwriters' help sets an initial price and date for the stock to begin trading on a stock exchange.
Company Profile and Financial Indicators before Blend IPO
Blend Labs (BLND) is IPO'ing in the NYSE on July 15. Blend offers a digital platform for financial service companies.
Blend Labs products enable credit and financial institutions to simplify customer operations. As a result, getting a loan or opening a deposit becomes much more convenient and faster, which boosts client loyalty. Loan applications worth over $5B are processed daily through Blend Labs platform.
Blend Labs works with both large companies, such as Wells Fargo, US Bank, M&T Bank, etc.), and small credit institutions, fintech companies, and loan providers that manage less than $1B. As of late 2020, the platform had 291 customers, 31 of which are in the top 100 US financial companies in terms of assets under management.
In 2020, Blend Labs earnings rose from $50.7M to $96M, which means they almost doubled. The company is constantly investing money into its development: in June 2021, it acquired Title365, one of the leaders of the US insurance market, in order to expand its services. Title365 is also showing brilliant financial results: in 2020, its earnings amounted to $212.10M against $105.30M in 2019.
Market Cap $3733.2mil
Revenues $112.31 mil (last 12 months)
Net Income $-78.84 mil (last 12 months)
How to Buy Blend 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 Blend 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 Blend shares when the company goes public via a commission-free trading app like eToro.
Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
🚨 Detailed Instructions How to Participate in the Blend IPO before public trading:
Below we share the instruction how to participate in the approaching Blend IPO using Freedom Finance (Freedom24 platform). This marketplace is chosen as an example because Blend is already listed there.
🎁 Special limited time offer for European Union citizens or residents aged at least 25 years - you will get a free share if you now register a verified account through this link. The value of a stock that you will receive in your account may vary in the range of USD $600, with companies like Netflix, Ford, Microsoft etc.
* 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 short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Submit a request to participate in the IPO — when applications are open select Blend and 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.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 72%, past IPOs data.
When is the Blend IPO date?
Blend's IPO date is July 14, 2021.
What is Blend IPO price range?
Blend IPO price range is $16.00 - $18.00 per share.
How to Invest in Blend after the IPO date (opening price)?
After the IPO you can buy Blend stocks via Freedom24 or eToro on the first trading day.
🎁 Special limited time offer for European Union citizens or residents aged at least 25 years - you will get a free share when you register a verified Freedom24 account through this link. The value of a stock that you will receive in your account may vary in the range of USD $600, with companies like Netflix, Ford, Microsoft etc.
In what currency Blend IPO and post-IPO shares will be traded?
The Blend IPO and stock trading currency will be USD.
If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Wise. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. Wise never hides fees in the exchange rate.
What is the Blend (stock symbol)
The stock ticker for Blend will be BLND
Blend Registration Statement on Form S-1
Blend Registration Statement on Form S-1
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