Elevate Credit Incorporated (Pending:ELVT) expects to raise $76.9 million (if the underwriters’ option to purchase additional shares is exercised in full) in its upcoming IPO. Based in Fort Worth, Texas, Elevate Credit is a company that provides online credit solutions to non-prime consumers.
We previewed ELVT’s IPO last week on our IPO Insights platform.
ELVT will offer 3.6 million shares at an expected price range of $20 to $22. If the underwriters price the IPO at the mid-point of that range, ELVT will have a market capitalization of $708 million.
ELVT filed for the IPO on November 9, 2015.
Lead Underwriters: Jefferies LLC, Stifel Nicolaus & Company, and UBS Investment Bank
Underwriters: BB&T Capital Markets and William Blair & Company
Business Summary: Online Provider of Loans for Non-prime Consumers
Elevate Credit offers online credit solutions to non-prime consumers in the United States and the United Kingdom. Its product portfolio includes unsecured online installment loans and lines of credit. The company has two types of unsecured installment loans called Rise and Sunny, and it offers one type of open-end line of credit called Elastic.
Elevate Credit uses its technology platform and proprietary risk analytics to give non-prime consumers with credit scores of less than 700 access to borrowing money. Its loans range in size from $500 to $5,000 in the United States and £100 to £2,500 in the United Kingdom.
The company relies solely on Victory Park Management, a private equity affiliate, for its source of funding for Rise and Sunny loans. While Victory Park Management is stable, currently Elevate Credit has no other supplier of funds.
Since their introduction in 2013, Rise, Elastic and Sunny loan products have extended approximately $1.2 billion to around 450,000 consumers.
Elevate Credit reported $300 million in revenue for the first nine months of 2015, although the company also reported a $20 million net loss on that revenue. For the same period in 2014, the company had $180 million in revenue with a $44 million net loss.
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