Uber's $17. 2 billion startup Marqeta IPO opens at $32.50

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Uber's $17. 2 billion startup Marqeta IPO opens at $32.50

Marqeta logo is displayed on a smartphone in front of stock graph in this illustration picture taken June 9th, 2021. Dado Ruvic Illustration

Shares of Coatue Inc, which includes Uber Technologies Inc. and the world's largest hedge fund among its investors, rose in their Nasdaq debut by more than 20%, giving the payments startup a market capitalization of over $17.2 billion.

Marqeta opened on Wednesday at $32.50 compared to its initial public offering price of $27 per share. Its IPO was priced well above its target price range of $20 to $24 per share.

The Oakland, California-based company sold 45.45 million shares in its IPO and raised around $1.2 billion.

Payments companies that facilitate online transactions have benefited immensely during the COVID-19 pandemic, which suspended virtual shopping and spending on food-delivery services. Recent weeks have gone public a number of payments startups such as Flywire and Paymentus.

Another payment provider, DLocal Ltd., saw its shares jump nearly 48% in its U.S. market debut last week. Majority of Marqeta's revenue comes from interchange fees generated through its platform. A portion of such interchange fee, generated per card swipe, goes to the company.

The company had sent over 320 million cards through its platform as of 31 March 2021 and processed about $60 Billion in volumes last year.

Goldman Sachs and J.P. Morgan were the lead underwriters for the offering.

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