Fintech company Figure pursuing $4.1 billion valuation amidst IPO challenges on Wall Street

In a significant move for the blockchain industry, Figure Technologies, a leading platform for consumer lending and digital asset services, has announced its intention to go public. The company aims to list on the Nasdaq under the ticker symbol "FIGR," targeting a September IPO after a successful profit turn.

Founded in 2018, Figure Technologies has been making waves in the fintech space, offering rapid loan processing capabilities that allow for home equity loans to be completed in roughly a week and a half, significantly faster than the industry standard. This efficiency has been a key factor in the company's recent profitability, with Figure posting a $29 million profit for the six months ending June 30, a significant improvement from the $13 million loss during the same period last year.

The company's focus on blockchain technology sets it apart from traditional fintech companies. It operates at the intersection of traditional finance and cryptocurrency markets, handling everything from consumer credit to digital asset trading. This unique positioning has been encouraged by successful public debuts by crypto exchange Bullish and stablecoin issuer Circle, which have encouraged other blockchain companies to test investor appetite.

The current administration's strong support for the fintech space may contribute to an active pipeline for well-structured, compliance-forward players like Figure Technologies. Recent regulatory clarity and strong inflows into cryptocurrency exchange-traded funds have boosted institutional adoption of digital assets, creating a favourable environment for Figure's IPO.

Figure Technologies plans to sell 26.3 million shares at $18 to $20 each, potentially raising $526.3 million. Goldman Sachs, Jefferies, and Bank of America Securities are serving as lead underwriters for the IPO.

The fintech sector had largely avoided public markets during the past two years due to rising interest rates and regulatory uncertainty. However, recent developments, such as Figure's IPO announcement, suggest Wall Street's appetite for financial technology companies is rebounding after a prolonged drought. Figure joins Swedish buy-now-pay-later giant Klarna and cryptocurrency exchange Gemini in launching investor roadshows this week.

The origin of the term fintechs can be traced back to the 1990s, where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services. Figure Technologies' IPO is a testament to this evolution, demonstrating the potential for fintech companies to thrive in the public market.

Fintech company Figure pursuing $4.1 billion valuation amidst IPO challenges on Wall Street