Marqeta Inc, a United States-based card issuing company backed by Goldman Sachs Group Inc GS, is preparing to go public.
What Happened
Marqeta is in the process of hiring investment banks for an initial public offering.
The IPO may be held this year or in 2021, according to Reuters’ anonymous sources.
The card-issuer has been bolstered by the ongoing pandemic and has witnessed a spike in usage by online shoppers and users of food delivery services.
Founded in 2010, the company now operates in the United States, Canada, Europe, and Asia-Pacific.
Marqeta’s services are used by companies to issue credit and debit cards to their workers. By the end of 2019, it had issued more than 140 million cards.
Why It Matters
Marqeta’s valuation rose to $4.3 billion in May after it raised $150 million in fresh capital from an undisclosed investor.
The Oakland, California-based company counts Square Inc SQ, Uber Technologies Inc UBER, Affirm, Instacart, and DoorDash among its clients.
Last year, Marqeta raised $260 million in equity financing lead by Coatue, a technology sector hedge fund, and Vitruvian Partners, an international investment firm, along with others.
Banks have told the card issuer that it could go public at a much higher valuation, according to Reuters.
Marqeta’s listing comes at a time when companies are seeking to take advantage of the recent upswing in markets in the wake of the COVID-19 pandemic.
In June, the payment processor, Shift4 Payments, Inc’s FOUR IPO was priced at $23 per share. On Wednesday, that company’s shares set a new yearly high of $47.95.
Price Action
On Thursday, Goldman Sachs shares closed 2.86% lower at $196.83.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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