Figure FIGR, a blockchain-based lender, has made waves in the financial markets following a successful initial public offering (IPO) that raised an impressive $787.5 million. The company closed its first day of trading on the Nasdaq with a notable gain of over 24% from its offering price and continued to soar, witnessing an additional 10% increase on the second day.
This listing marks a significant moment in a series of long-anticipated IPOs in the cryptocurrency sector, coinciding with a favorable regulatory environment pushed by the Donald Trump administration and a Republican-controlled Congress. The excitement around this IPO is heightened as technology companies seek to capitalize on the traditional post-Labor Day window for public offerings.
Originally, Figure aimed to set its share price between $20 and $22, but it ultimately increased the offering price to $25. This adjustment positioned the company at a valuation of $5.3 billion. When trading commenced on Thursday, the stock opened at $36.00 before settling at $31.28 by the end of the day. On Friday, shares climbed to over $34.
The IPO has proved lucrative for some of the crypto industry’s most esteemed venture capital firms, including Pantera Capital, Jump Crypto, CMT Digital, DCM Ventures, and North Island Ventures, alongside notable support from tech VCs such as Lightspeed. Under the leadership of Mike Cagney, co-founder of SoFi, Figure focuses on delivering home equity lines of credit (HELOC) loans, promising to process these loans within approximately ten days. Earlier this year, in preparation for its public debut, the company merged its two business operations, Figure Markets and Figure Technology Solutions.
Reflecting on its financial health, Figure reported a profit of $29.3 million with $190.5 million in revenue as a private entity during the first half of this year. Looking ahead to full-year 2024, the company anticipates generating a profit of $17.2 million after experiencing a net loss of $47.94 million the previous year.
The investor community is now setting its sights on upcoming crypto IPOs, including the much-anticipated listing of the Gemini crypto exchange, scheduled for September 12, which is reported to be 20 times oversubscribed. Earlier in the year, Circle Internet set a high bar with its IPO, achieving an $18 billion valuation for its stablecoin issuance.
