Jefferson Capital Sets $15-$17 IPO Range, Aims for $1.1B Valuation

Jefferson Capital, a leading company in the acquisition and management of charged-off and bankrupt consumer accounts, has set the pricing range for its initial public offering (IPO) between $15 and $17 per share. If the IPO is priced at the upper end of this range, the company's overall valuation would reach approximately $1.1 billion. Currently, the company has 64.8 million shares outstanding and plans to list on the Nasdaq under the ticker symbol "JCAP."

In this IPO, Jefferson Capital plans to issue 6.25 million new shares, while existing shareholders will sell 93.75 million shares. According to documents filed with the U.S. Securities and Exchange Commission (SEC), major shareholders J.C. Flowers will sell 77.6 million shares, and Canaccede-related entities will sell 16.1 million shares. If the overallotment option is fully exercised, CEO David Burton will sell 424,296 shares.

If priced at the upper end of the range, Jefferson Capital is expected to raise approximately $106 million in net proceeds. If priced at the midpoint, the company is expected to raise about $37 million in net proceeds. The company plans to use approximately $37 million to repay any outstanding borrowings under its revolving credit facility, with the remaining funds to be used for general corporate purposes.

Jefferson Capital operates primarily in the United States, Canada, the United Kingdom, and Latin America, with a secondary office in Mumbai, India, for outsourced operations. The company acquires distressed consumer loans and receivables at a discount, managing a wide range of asset types in collaboration with account holders to help them repay their debts and achieve financial recovery.

For the 12 months ending March 31, 2025, the company reported revenue of $488 million. In the first quarter of 2025, total revenue was $154.9 million, compared to $99.9 million in the same period last year. Adjusted net income increased from $34.2 million to $62.9 million year-over-year. For the full year 2024, adjusted net income grew by 41% to $153.6 million.

Jefferson Capital's IPO pricing range of $15 to $17 per share indicates a positive market sentiment towards the company's business prospects. The successful execution of the IPO will be a pivotal moment for Jefferson Capital, providing it with the necessary capital to pursue growth initiatives and strategic acquisitions. The company's focus on data-driven debt acquisition and management positions it uniquely in the financial services sector, with a growing need for efficient debt management solutions.

Investors will be closely monitoring Jefferson Capital's post-IPO performance. The company's ability to deliver on its growth promises and maintain strong financial performance will be crucial in determining the success of its public listing. The IPO pricing range sets a benchmark for investor expectations, and the company will need to meet or exceed these expectations to justify its valuation.