- Affirm is delaying its planned IPO until next year, making it the second company in days to suspend its public debut, according to The Wall Street Journal.
- The move comes shortly after Roblox decided to postpone its planned 2020 IPO until next year to seek a higher price, given strong investor demand for high-growth technology IPOs.
- The recent IPO frenzy has been accelerated by strong commercial debuts from Airbnb and DoorDash earlier this week.
- Visit the Business Insider home page for more stories.
Affirm’s planned initial public offering for 2020 has been suspended until next year, The Wall Street Journal reported Saturday: citing people familiar with the matter.
The point of sale lender’s decision to postpone its IPO comes soon after Roblox decided to postpone its planned initial public offering to 2020 until next year to seek a higher price, given strong investor demand for high-growth technology IPOs.
Affirm planned to start selling its shares to potential investors next week and was on track to receive a market valuation of up to $ 10 billion, according to The Journal.
Part of the reason Affirm delayed its offering was due to high price spikes in recent Airbnb and DoorDash offerings, as well as delays at the Securities and Exchange Commission due to an increase in requests for quotes from private companies, the Journal reported.
Now, Affirm’s public debut won’t arrive until at least January, according to the report.
Affirm and Roblox are trying to strike a delicate balance of not leaving money on the table by pricing their IPO too low, but also not pricing their shares too high, which could lead to a commercial debut. weak. Meanwhile, both companies hope (and bet) the IPO window will remain open early next year.
A sharp correction in the stock market can occur at any time, closing the IPO window, as that is not an ideal environment for a private company to go public.
BlackRock CEO Larry Fink believes recent IPO frenzy is “unsustainable” and could lead to “many accidents”.
Read more: Cathie Wood is outperforming 99% of fund managers this year. The ARK CEO and her team share their outlook for 2021, including their thoughts on the $ 5 billion sale of Tesla stock, the Salesforce-Slack union, and the meteoric rise of bitcoin.