Briefing

Affirm’s stock doubles on debut, creating windfall for Shopify

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The San Francisco-based installment-payment company priced the 24.6 million shares of its Nasdaq initial public offering at US$49 per share, raising US$1.2 billion. The stock opened above US$90 and rose further in Wednesday trading, closing at more than US$97. (The Logic)

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Talking point: According to Affirm’s filings with the U.S. Securities and Exchange Commission, under the terms of a July 2020 deal, Affirm’s offering meant Shopify could exercise its warrant to buy 15.2 million shares for a cent each ahead of the monthly vesting schedule; it already bought five million in September. The Canadian firm’s stake, fully realized, is now worth nearly US$2 billion—or more than one and a half times as much as Shopify itself was valued at in its May 2015 IPO. Investors in Toronto-based PayBright, which Affirm bought in December 2020, also hold 3.62 million shares, now worth over US$351 million, more than the acquisition’s US$340-million announced value.