Marqeta Inc., a web-based card and fee processing firm, rose as a lot as 21% in its buying and selling debut after elevating $1.23 billion in an preliminary public providing priced above a marketed vary.
Shares of the Oakland, California-based firm had been up 11.4% to $30.09 at 3:41 p.m. Wednesday in New York buying and selling, giving it a market worth of about $16 billion. Diluted to incorporate holdings equivalent to inventory choices, Marqeta’s worth rises to greater than $16.7 billion.
Marqeta offered 45.5 million shares for $27 apiece on Tuesday after advertising and marketing them for $20 to $24.
Founded in 2010 by PropertyBridge co-founder Jason Gardner, Marqeta provides bodily and digital debit, credit score and pay as you go playing cards. Its IPO follows a wave of listings previously 12 months by monetary expertise companies.
“The reason there’s a flurry of companies especially in the payment space is that everything is moving to modern platforms,” Gardner, Marqeta’s chief government officer, mentioned in an interview. “Payments are becoming more digitized.”
Gardner mentioned Marqeta will develop to new markets and international locations the place it sees alternatives, in addition to contemplate acquisitions.
“We’ve been looking at a number of things too, but nothing has caught our eye,” he mentioned.
Marqeta’s prospects embrace technology-enabled firms like Uber Technologies Inc., Doordash Inc. and Instacart Inc. Uber can also be a backer of the corporate via the holding of a inventory warrant.
Payments firm Square Inc. is Marqeta’s largest buyer, accounting for 70% of its web income in 2020, in line with the filings with the U.S. Securities and Exchange Commission.
Marqeta reported $108 million in income within the first quarter of the 12 months, greater than doubled the identical interval in 2020. Its web loss narrowed to $12.8 million versus $14.5 million final 12 months.
The firm’s backers embrace 83North II, Coatue, Iconiq, Granite Ventures, and Discover Financial Services.
JPMorgan Chase & Co., one of many lead underwriters of the providing, makes use of Marqeta to allow its industrial bank card prospects to make use of their playing cards on digital wallets equivalent to Apple pockets.
Goldman Sachs Group Inc. led the share sale with JPMorgan. Marqeta’s shares are buying and selling on Nasdaq Global Select Market below the image MQ.
By Crystal Tse and Katie Roof (Bloomberg Mercury)
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