NEW YORK, 8 June - American payment startup Marqeta, which counts the likes of Uber and Stripe among existing backers on Tuesday priced its initial public offering well above the target range to raise $1.2 billion, said a person familiar with the matter.
Marqeta sold 45.45 million shares at $37 per share, the source said. It had before set a price range of $20 to $24 a share.
On a fully restricted 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 was valued at $4.3 billion when it raised $150 million from investors in May of last year. Excluding employee stock options, Marqeta will have a market capitalization of $14.3 billion.
The source asked anonymity as the details were not yet public. Marqeta did not immediately respond to a request of comment from her team.
Marqeta's IPO comes at a time when investors are betting big on online fintech startups, which have received a boost during the COVID 19 Pandemic that forced consumers to use more high-growth financial services. A number of payment 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 revenues have risen more than twofold in 2020 as online consumers shopped more.
Marqeta was incorporated in 2010 in Oakland, California and helps companies issue credit and debit cards to their staff.
It has a feature called Just-In-Time Funding that circumvents the need to maintain adequate balances for each cardholder transaction. Funds are automatically transferred into accounts at the time of transaction into the bank.
It is expected that Marqeta shares will start on Wednesday trading on the Nasdaq under the symbol MQ. Goldman Sachs and J.P. Morgan are the lead underwriters of the offering. At the time I started to work on that project, I was thinking, "Do you mean it sounds like something is wrong" and so on..