US payments start-up Marqeta, which counts the likes of Uber Technologies and Stripe among existing backers, has priced its IPO well above the target range to raise $1.2 billion, a person familiar with the matter said.
Marqeta sold 45.45 million shares at $27 per share, the source said. It has earlier set a price range of $20 to $24 a share.
On a fully diluted basis, which includes securities such as stock options and restricted stock units, Marqeta is currently valued at $15.23 billion, based on its IPO price.
The company had been valued at $4.3 billion when it raised $150 million from investors in May last year. Excluding employee stock options, Marqeta will have a market capitalization of $14.3 billion.
The source requested anonymity as the details were not yet public. Marqeta did not immediately respond to a request for comment.
Marqeta’s IPO comes at a time when investors are betting big on high-growth fintech start-ups, which have received a boost during the seemingly endless global coronavirus pandemic that forced consumers to use more online financial services. A number of payments start-ups such as Flywire and Paymentus have gone public in recent weeks.
Marqeta, whose customers include Uber Technologies, food delivery company DoorDash Inc and payment firm Square Inc, previously disclosed that its revenue risen more than two-fold to $290.3 million in 2020 as homebound customers shopped more online.
Oakland, California-based Marqeta was launched in 2010 and helps companies issue credit and debit cards to their staff.
It offers a feature called “Just-In-Time Funding” that circumvents the need to maintain sufficient balances for each cardholder transaction. Funds are automatically transferred into the account at the time of the transaction.
Marqeta’s shares are scheduled to start trading on Wednesday on the Nasdaq under the symbol “MQ.” Goldman Sachs and JP Morgan are the lead underwriters for the offering.
The team at Platform Executive hope you have enjoyed this article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Echo Wang. Editing by Lincoln Feast.
You can stay on top of all the latest developments across the platform economy, find solutions to your key challenges and gain access to our problem-solving toolkit and proprietary databases by becoming a member of our growing community. For a limited time, our subscription plans start from just $16 per month. What are you waiting for?