Elevate Credit has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company has decided to price its 12.4 million shares at $6.50 per share, with an overallotment option for an additional 1.86 million shares. At this price the entire offering is valued up to $92.69 million. The company intends to list its shares on the New York Stock Exchange under the symbol ELVT.
The underwriters for the offering are UBS Investment Bank, Credit Suisse, Jefferies, Stifel and William Blair.
The company had decided to postpone its offering back in January, but now it is back on the table.
The company offers technology-driven online credit solutions to non-prime consumers. This is for consumers with credit scores of less than 700 and who are not well-served by either banks or legacy non-prime lenders. These non-prime consumers — approximately 170 million people in the United States and United Kingdom — now represent a larger market than prime consumers but are difficult to underwrite and serve with traditional approaches.
In the filing, the company detailed its finances:
We have experienced rapid growth and improving operating margins since launching our current generation of products in 2013. As of December 31, 2016, Rise, Elastic and Sunny, together, have provided approximately $2.5 billion in credit to approximately 785,000 customers and generated strong revenue growth. Our revenues for the year ended December 31, 2016 grew 34% to $580.4 million from $434.0 million for the year ended December 31, 2015. Our operating income for the years ended December 31, 2016 and 2015 was $47.8 million and $9.0 million, respectively. Our net losses for the years ended December 31, 2016 and 2015 were $22.4 million and $19.9 million, respectively.
Elevate Credit intends to use the net proceeds from the offering to repay its outstanding debt. The remainder of the net proceeds is being invested in short-term, investment-grade, interest-bearing securities, as well as going toward working capital and general corporate purposes.