Elevate Credit Postpones IPO
In a surprise turn of events, Elevate Credit has decided to postpone its initial public offering due to difficult market conditions.
In a surprise turn of events, Elevate Credit has decided to postpone its initial public offering (IPO). Originally, the IPO was scheduled to take place on Thursday, January 21, but due to difficult market conditions the company decided against it.
The company planned to offer 3.6 million shares in an expected price range of $20 to $22, raising $75.6 million at an implied valuation of $638.4 million. Joint bookrunners for the offering were going to be UBS Investment Bank, Jefferies, Stifel and William Blair. The co-manager was going to be BB&T Capital Markets.
What would have been interesting about Elevate, besides the fact that it could have been the year’s first venture capital-backed IPO, was that it has been characterized as a payday lender that charges borrowers much higher interest rates than those available on other types of loans.
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.
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Elevate currently offers online installment loans and lines of credit in the United States and the United Kingdom. Its products, Rise, Elastic and Sunny, have provided approximately $1.2 billion in credit to approximately 450,000 customers and generated strong revenue growth. They reflect its mission of “Good Today, Better Tomorrow” and provide customers with access to competitively priced credit and services while helping them build a brighter financial future with credit building and financial wellness features.
Unfortunately, investors will have to wait for this to hit the market, or at least when these prevailing market conditions clear up.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
