Doordash Stock- Marqeta prices IPO above range, valuing startup at $15 billion
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(In JUNE 8 story corrects to read hedge fund Coatue, paragraph 1)
By Echo Wang
NEW YORK (Reuters) -U.S. payments startup Marqeta, which counts the likes of Uber and hedge fund Coatue among existing backers, on Tuesday priced its initial public offering (IPO) well above the target range to raise $1.2 billion, the company said in a statement.
Marqeta sold 45.45 million shares at $27 per share. It had earlier set a price range of $20 to $24 a share.
On a fully diluted basis, which includes securities such as stock options and restricted stock units, Marqeta is currently valued at $15.23 billion, based on its IPO price.
The company had been valued at $4.3 billion when it raised $150 million from investors in May last year. Excluding employee stock options, Marqeta will have a market capitalization of $14.3 billion.
Marqeta’s IPO comes at a time when investors are betting big on high-growth fintech startups, which have received a boost during the COVID-19 pandemic that forced consumers to use more online financial services. A number of payments startups such as Flywire and Paymentus have gone public in recent weeks.
Marqeta, whose customers include Uber Technologies, food delivery company DoorDash Inc and payment firm Square Inc, previously disclosed that its revenue risen more than two-fold to $290.3 million in 2020 as homebound customers shopped more online.
Oakland, California-based Marqeta was launched in 2010 and helps companies issue credit and debit cards to their staff.
It offers a feature called “Just-In-Time Funding” that circumvents the need to maintain sufficient balances for each cardholder transaction. Funds are automatically transferred into the account at the time of the transaction.
(Reporting by Echo Wang; Additional reporting by Nandakumar D in Bengaluru; Editing by Lincoln Feast and Sherry Jacob-Phillips)