Remitly prices IPO at $43/share; Seattle fintech giant valued at nearly $7B – GeekWire
Remitly will be valued at nearly $7 billion when it goes public on Thursday.
The Seattle company priced shares at $43 on Wednesday evening, above its expected range of $38-to-$42, valuing the fintech giant at $6.9 billion.
Remitly shares will begin trading Thursday morning on the NASDAQ under the ticker RELY. Update: The stock opened at $53/share, up more than 20%. It ended Thursday trading at $48.45/share.
The company will raise more than $300 million in net proceeds as part of the IPO, one of the largest for a Seattle-area tech firm.
Remitly’s last valuation was $1.5 billion in July.
Remitly is among a flurry of companies going public in September. This year is expected to be the biggest ever for IPO proceeds, MarketWatch reported.
Around half of this year’s IPOs are trading below their offering price, CNBC reported. Toast and FreshWorks both saw shares jump this week in their public debuts despite some macroeconomic concerns including the situation with China’s Evergrande.
The Renaissance Capital IPO Index is up about 6% year-to-date.
Founded in 2011, Remitly’s mobile technology lets people send and receive money across borders, including immigrants in the U.S. and U.K. who support families back home in countries such as the Philippines, India, El Salvador, and others. The service eliminates forms, codes, and agents typically associated with the international money transfer process.
The company posted $202 million in revenue and a $9.2 million net loss in the first six months of this year. It generated $257 million in revenue and a $32.5 million net loss in 2020, doubling its annual revenue and cutting its loss nearly in half.
Remitly competes against a number of other cross-border money transfer companies, including Wise (formerly TransferWise), which was valued at $11 billion after going public via direct listing in July, and Zepz (previously WorldRemit), which raised $292 million in a Series E funding round earlier this month.
We’ll have additional coverage of Remitly’s IPO on Thursday, so check back on GeekWire for updates.