Fintech Company Marqeta To Debut on NASDAQ

Summary

  • The card issuing and payments processing company will offer 45.45 million shares.
  • San-Francisco-based Marqeta expects to raise US$921.5 million at the midpoint of its price range.
  • The startup could fetch a valuation of more than US$12 billion.

Marqeta, Inc. is expected to debut on Nasdaq Global Select Market on June 9, Wednesday, through an initial public offering. The startup will trade under the ticker MQ.

The San Francisco-based company offers a card issuing platform. Marqeta’s open application programming interface enables its customers to launch and manage their own card programs. It also allows customers to issue cards and authorize and settle payments transactions.

Marqeta’s customers include Affirm, DoorDash Inc. (NYSE: DASH), Instacart, Klarna and Square, Inc. (NYSE: SQ). As of March 31, the company issued approximately 320 million cards on its platform.

READ MORE: 10 Upcoming US IPOs To Watch Out In 2021

Initial Public Offering

Marqeta plans to sell approximately 45.45 million shares at a price range of US$20 to US$24 per share. The company could fetch a valuation of more than US$12 billion. At the midpoint of the price range, it would raise approximately US$921.5 million from the offering.

If the underwriters fully exercise their option to buy additional 6.8 million shares, Marqeta expects net proceeds of US$1.06 billion.

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the lead underwriters in this offering.

READ MORE: What is an IPO? Why does a company go public?

Source: Pixabay

Financials

In the year ended Dec. 31, the payment processing company revenue doubled its net revenue to US$290.3 million from US$143.3 million in 2019.

Marqeta narrowed its net loss in 2020 to US$47.7 million from a US$58.2 million loss in the previous year.

The company processed approximately 1.6 billion transactions on its platform during the year. At the end of the year, Marqeta had approximately 57 million active cards.

Meanwhile, Marqeta’s net revenue during the three months ended March 31 jumped 123 percent to US$108 million from US$48.4 million in the year-ago quarter.

Net loss declined 12 percent year over year in the first quarter to US$12.8 million.

READ MORE: PayPal, Square Ride High On Strong Digital Payments

Comment


Disclaimer