Blend Labs Inc, a digital banking platform focused on mortgage lending, is targeting a valuation of nearly $4 billion in its IPO in the US, seeking to cash in on the boom in demand for online financial services.
Blend aims to sell 20 million shares priced between $16 and $18 each to raise up to $360 million, it said in an amended filing on Tuesday.
The company, which had filed confidentially for its listing in April, was last valued at $3.3 billion after a funding round in January.
Blend’s cloud-based software platform digitizes banking, making it more convenient for customers to borrow money or deposit cash.
On average, more than $5 billion in transactions are processed via the San Francisco-based company’s platform every day. It had 291 customers including Wells Fargo & Co and Lennar Mortgage, as of last year.
The filing follows the busiest week of the year for US IPOs, which saw more than a dozen companies enter the stock markets.
China’s ride-hailing giant Didi Global debuted last week, while online brokerage Robinhood Markets disclosed its IPO filing.
Low-interest rates brought on due to the pandemic last year have led to a rise in demand for mortgage insurance. Higher interest rates could hurt demand for Blend’s platform, it said in the filing.
Blend was co-founded in 2012 by Nima Ghamsari, its current head and a former employee of analytics giant Palantir Technologies Inc. Ghamsari will have 68% of the voting power after the offering, the company said.
Timothy Mayopoulos, a former CEO at mortgage finance company Fannie Mae, is the president of the start-up.
Goldman Sachs & Co, Allen & Company and Wells Fargo Securities are the IPO’s lead underwriters. Blend will list on the New York Stock Exchange under the symbol “BLND.”
The team at Platform Executive hope you have enjoyed the ‘Mortgage-focused start-up Blend seeks $4 billion valuation in IPO‘ 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 Niket Nishant in Bengaluru. Editing by Vinay Dwivedi.
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