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Upstart files for US stock market flotation
Posted on Thursday, 05 November 2020 14:23
Upstart Holdings, a US-based artificial intelligence (AI) platform, has announced plans to go public by registering a filing with the US Securities and Exchange Commission.
Terms of the transaction, including the size, price and timing of the initial public offering (IPO), were not disclosed.
Upstart is planning to list on Nasdaq under the symbol UPST and has hired Goldman Sachs, BofA Securities and Citigroup as lead bookrunning managers for the listing, with Jefferies and Barclays also working on the share sale.
The group is billed as a cloud-based AI lending platform enabling superior loan products with improved economics that can be shared between consumers and lenders.
Its platform aggregates consumer demand for high-quality loans and connects it to a network of bank partners.
Since inception, these partners have originated over 620,000 personal loans that have generated more than 9.00 million repayment events.
In the nine months to 20th September 2020, around 70.0 per cent of Upstart-powered loans were entirely automated.
The offering will increase capitalisation and financial flexibility, create a market for its common stock and enable access to the public equity markets.
Proceeds raised from the flotation will be used for general corporate purposes, working capital, operating expenses and capital expenditures.
In the nine months ended 30th September 2020, Upstart posted revenue of USD 144.18 million, up from USD 98.67 million in the corresponding period of 2019.
Net loss before tax totalled USD 9.89 million in Q1-3 2020, compared to a net income of USD 4.55 million.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 20 deals targeting depositary credit intermediation companies announced worldwide in 2020 to date.
In the largest of these, China Bohai Bank concluded a listing on the main board of the Hong Kong Stock Exchange raising HKD 15.90 billion (USD 2.05 billion).
Eastern Bankshares, Weihai City Commercial Bank, ESAF Small Finance Bank and William Penn, among others, have also been targeted.
© Zephus Ltd