Morning Report: Elevate IPO Debut Comes Under Expected Range

After its first failed attempt to IPO, this morning Elevate Credit priced its IPO at $6 per share and started trading at $7 per Yahoo Finance. According to CNBC, the company raised over $90 million from its public debut.

The firm’s pricing was well under its initially proposed share price range of $12-$14. Its ensuing drop is not stellar news for the company.

The company reported in its S-1 document that it intends to use its IPO proceeds to reduce its heavy debt load. The firm’s net interest expenses grew from $36.67 million to $64.28 million from 2015 to 2016. The company’s operational profit was $47 million in 2016, for context.

The already public LendingClub, which also deals out subprime loans, trades around $5 per share. This is amidst news that its former CEO is starting another lending company. For Lending Club, its current share price puts it far below it’s 2014 IPO price of $15 per share, likely making investors wary of Elevate’s financial underpinnings.

In light of Elevate, the second quarter is looking strong and active for IPOs. Okta is expected to IPO at $13-$15 this Friday. Following Okta is Yext on the following Thursday, which hopes to debut at $8-$10 per share.

From the Crunchbase Daily

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