Affirm Holdings Becomes 2nd Company This Weekend To Delay Initial Public Offering

Affirm Holdings Inc. has become the latest company to put off its IPO until the next year.

What Happened: The Wall Street Journal reported that the fintech startup has decided to postpone its IPO until next year — January at the earliest — according to a source familiar with the matter. It was supposed to go public in the upcoming week.

The specific reasons are unknown, but the source mentioned delays at the Securities and Exchange Commission caused by the surge in filings and last week’s IPO craze, according to the Journal.

Why It Matters: The news comes a day after online gaming platform Roblox announced it is delaying its listing until next year for similar reasons.

The shares of AirBnB Inc ABNB and DoorDash Inc DASH, which went public last week, skyrocketed 142% and 92%, respectively, on the first day, surpassing analyst and investor expectations — and leaving open the question that the companies had left a lot of money on the table.

Affirm and Roblox also are considering selling more shares and “changing the mix of stock to be sold by the company,” WSJ reports.

Affirm's technology lets shoppers, including customers of Walmart Inc WMT and Expedia Group Inc EXPE, pay for goods in installments using short-term loans. CEO Max Levchin was also a co-founder of PayPal Holdings Inc PYPL.

Investors to the startup include Fidelity Investments, Founders Fund and Lightspeed Venture Partners.

Image: Courtesy of Affirm




Posted In: AffirmAirbnbDoorDashMax LevchinThe Wall Street JournalNewsIPOsStartupsSECTechMedia