Blockchain Meets Wall Street as Figure Aims for $4B IPO

Figure Technology Solutions, Inc. has launched its initial public offering (IPO), targeting a valuation of up to $4 billion as it transitions to a profitable blockchain lender. The company is offering 26,315,789 shares of Class A common stock, with 21,461,085 shares being offered by the company itself and 4,854,704 shares by selling stockholders. The IPO price is set between $18.00 and $20.00 per share, and the company has applied to list its shares on the Nasdaq Global Select Market under the ticker symbol "FIGR" [1]. Proceeds from the IPO will not benefit the company for shares sold by the selling stockholders, while the underwriters may have the option to purchase additional shares within 30 days.

Goldman Sachs & Co. LLC, Jefferies, and BofA Securities are serving as joint lead bookrunning managers for the offering. Additional support is being provided by Societe Generale, Keefe, Bruyette & Woods, A Stifel Company, and Mizuho as bookrunners, while Texas Capital Securities, Needham & Company, Piper Sandler, FT Partners, KKR, and Roberts & Ryan are acting as co-managers [1]. The IPO is being made available through a prospectus, and interested parties can obtain a preliminary copy through the lead underwriters’ contact information, as detailed in the filing.

The IPO filing is part of a broader strategy for Figure to secure additional capital and scale its blockchain-based lending operations. The company is currently in the process of obtaining regulatory approval from the SEC, as the registration statement for the offering has been filed but is not yet effective. Until this occurs, the shares may not be sold, and offers to buy cannot be accepted [1]. The move marks a significant milestone for the firm, which has previously been in the private equity space and is now seeking to enter the public market.

Blockchain lending has shown growing traction in financial markets, with firms leveraging the technology to streamline loan processing and reduce operational costs. Figure’s foray into this sector is seen as a strategic move to capture a segment of the market that is increasingly interested in blockchain-based solutions for credit and liquidity management [1]. The valuation target suggests investor confidence in the firm's business model and potential for growth in the blockchain finance space.

A registration statement has been filed with the Securities and Exchange Commission (SEC), but it has not yet been declared effective. As such, the offering will remain subject to regulatory clearance before it can proceed [1]. Once approved, the IPO is expected to generate significant interest, given the company’s strategic positioning and the current appetite for blockchain-enabled financial services.

Source: [1] Figure Technology Solutions, Inc. Announces Launch of Initial (https://finance.yahoo.com/news/figure-technology-solutions-inc-announces-131600344.html)