Figure Technologies has unveiled plans for an initial public offering (IPO) that could value the company at as much as $4.13 billion, signaling a significant moment for the blockchain lending firm within a rejuvenated market for cryptocurrency-related listings. Announcing its ambitions on Tuesday, Figure aims to seize the momentum generated by renewed investor interest amid improved regulatory clarity and a surge in capital flowing into crypto-focused exchange-traded funds.
The blockchain player, co-founded in 2018 by tech entrepreneur Mike Cagney, is set to offer 26.3 million shares priced between $18 and $20. This move could yield up to $526.3 million, propelling the firm into the public eye alongside other successful entrants such as crypto exchange Bullish and stablecoin issuer Circle.
The recent uptick in institutional adoption of digital assets reflects a favorable environment characterized by supportive policies from the current administration. IPOX CEO Josef Schuster noted that the IPO pipeline is likely to remain active for companies with robust compliance frameworks as the market matures.
Figure has positioned itself as a pioneer in leveraging blockchain technology to facilitate efficient lending solutions. Its platform allows for funding home equity loans in just 10 days, significantly faster than the industry average of 42 days. This operational efficiency is part of its appeal to investors, a sentiment echoed by Jeff Zell, a senior research analyst at IPO Boutique, who commented on the patience of investors in this space, keen on long-term potential given the ongoing regulatory advancements and growing market adoption.
Financially, Figure reported a profit of $29 million for the six months ending June 30, a significant turnaround from a loss of $13 million during the same period last year, highlighting its rapid progress.
Goldman Sachs, Jefferies, and BofA Securities are serving as lead underwriters for the IPO, which will see Figure listed on Nasdaq under the ticker “FIGR.” The upcoming listing continues the trend of cryptocurrency firms seeking public capital as the market landscape evolves and investor sentiment grows increasingly positive.
