Blockchain lending platform Figure Technology Solutions (FIGR.US) made its debut on NASDAQ Thursday, closing up 24.44% at $31.11 on its first trading day. This strong performance undoubtedly adds momentum to the ongoing crypto IPO surge.
Figure priced its offering at $25 per share, above the revised guidance range of $20-22. The IPO raised $787.5 million, giving the company a market valuation of approximately $6.6 billion. A 2021 venture capital funding round had valued the company at $3.2 billion.
According to Bloomberg data, this week is considered the busiest for U.S. IPO activity this year. Cameron and Tyler Winklevoss's cryptocurrency exchange Gemini Space Station (GEMI.US) is set to go public on NASDAQ Friday. Due to strong market demand, Gemini priced its IPO at $28 per share, above its previously announced guidance range of $24-26.
Figure co-founder Mike Cagney said Thursday: "Blockchain has democratized financial services." Discussing the importance of individual investors in this offering, Cagney noted that the company provided "one of the largest allocations to retail investors ever."
Figure leverages blockchain technology to streamline lending processes, including home equity loan operations. The company was founded in 2018 by Mike Cagney. CEO Michael Tannenbaum stated: "Our business sector has enormous room for growth and opportunities," noting that home equity totals $35 trillion.
Tannenbaum explained that Figure's decision to go public was blockchain-related. "What makes Figure unique is that we exemplify a company using blockchain to create real-world value," he said.
Documents show that Figure initially offered home equity lines of credit (HELOC) products and now also provides cryptocurrency-based loans and digital asset trading platforms. The company has issued over $16 billion in loans through blockchain channels.
In the artificial intelligence space, Figure's website indicates the company is using OpenAI technology to assist in evaluating loan applications and employs Google Gemini-powered chatbots.
According to company filings, for the six months ended June 30, the company reported net income of $29.1 million on revenue of $190.6 million, compared to a net loss of $15.6 million on revenue of $156 million in the same period last year.
Billionaire investor Stanley Druckenmiller's Duquesne Family Office expressed interest in subscribing to up to $50 million worth of shares at the IPO price. The IPO attracted over 25 times oversubscription.
The company's investors include DCM, Ribbit, Gemini Investments, and Morgan Creek Capital Management. Cagney is expected to retain control of 68.6% of Figure's voting rights.