A profit making financial services company targeting unique client groups is testing the IPO market this week.
The IPO Terms
San Carlos, California-based Oportun Financial Corporation is planning to offer 6.25 million shares in an IPO, which is expected to be priced in the range of $15-$17 per share, according to the S-1/A filing.
Of the 6.25 million shares offered, 4.69 shares will be offered by the company and the remaining 1.56 million shares will he offered by selling shareholders.
At the mid-point of the estimated price range, the 4.69-million offering is likely to raise gross proceeds of $75.04 million.
The company has applied for listing its shares on the Nasdaq under the ticker symbol "OPRT."
Barclays, JPMorgan and Jefferies are the lead managers for the offering, while Keefe, Bruyette & Woods, JMP Securities and BTIG are serving as co-managers.
Oportun, founded in 2005, promotes itself as a mission-driven provider of inclusive, affordable financial services using deep, data-driven understanding of its customers and advanced proprietary technology.
It focuses on serving the 100 million people living in the U.S. who either do not have a credit score or who may have limited credit history and are mis-cored, given the traditional credit scores do not reflect their credit worthiness.
Over 13 years, the company has originated over 3.2 million loans valued at $7.3 billion credit to more than 1.5 million unique customers.
In 2017, the U.S. market for consumers underserved by mainstream financial services was estimated at $188 billion, up from an estimate of $141 billion in 2016, Oportun said, citing estimates by the Financial Health Network.
For the fiscal year ended December 2018, Oportun reported net revenues of $341.64 million on a pro forma basis compared to the $280.93 million reported for the previous year. Net income increased about 40% to $39.43 million.
Net revenues for the six months ended June 30, however, declined 15% year-over-year to $200.77 million and net income fell 67% to $3.23 million.
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