Figure Technology Solutions Debuts on Nasdaq
Figure Technology Solutions Inc. began trading on Nasdaq Thursday under the ticker symbol FIGR. Shares opened at $36, valuing the company at $7.6 billion. This was a significant increase from the initial $25 offering price, which valued Figure at $5.3 billion. Trading volume surged early, but the stock later dropped to $30.33.
IPO Details and Investors
The company sold 23 million Class A common shares, with nearly 8 million more offered by existing shareholders. This raised $787.5 million in new capital. The IPO was led by Goldman Sachs, Jefferies, and Bank of America. Notable investors included Ribbit Capital and Stanley Druckenmiller’s Duquesne Family Office.
Figure was co-founded in 2018 by Mike Cagney, former CEO of SoFi Technologies. Cagney holds super-voting Class B shares that control 68.6% of the company’s voting power.
In a CNBC interview, Cagney said, “We were actually contemplating going public last year. For a whole host of reasons, we didn’t do it. It wasn’t the most hospitable environment for a blockchain company to go public last year. That’s changed a lot.”
Business Model and Financial Performance
Figure offers blockchain-based lending products, including home equity lines of credit, crypto-backed loans, and a digital asset exchange. The company has funded over $16 billion in loans using blockchain technology. Customers of partner-branded HELOC loans have an average FICO score of 756, higher than the 749 average for Figure-branded loans.
For the six months ending June 30, 2024, Figure reported $29.1 million in profit on $190.6 million in revenue. This contrasts with a loss of $15.6 million on $156 million in revenue the previous year. The company uses artificial intelligence, including OpenAI tools, to review loan applications. Google Gemini powers its customer service chatbots.
Other crypto firms preparing to go public include Gemini, BitGo, Grayscale, and Kraken. Gemini recently raised its IPO price range from $17–$19 to $24–$26.
