The 2020 tech IPO party continues to run hot as the Affirm IPO approaches. One of the people who started PayPal is behind Affirm, so in a sense, the Affirm public listing offers a second chance to investors who missed out on PayPal's IPO in 2002. So, when is the Affirm IPO date, and should you invest in Affirm stock?
When is the Affirm IPO date?
Affirm submitted its draft IPO documents to the SEC on Oct. 8 for regulatory review. The fintech startup expects its IPO to take place once the SEC completes its review. Therefore, the date of the initial public offering will depend on how fast the SEC works on the review. The Affirm IPO could come as soon as later this month or after the November presidential election, and it could even be next year.
In addition to not setting its IPO date for now, Affirm also hasn’t decided the number of shares it would sell in the public listing of its stock and the price range. Affirm projects the company has a valuation of $10 billion.
Folks, last week, we talked about, AFFIRM. Looks like they have secretly filed papers for an IPO. For those not familiar with them, it is a FinTech founded by one of the original founders of PayPal. PayPal as you know was Elon Musk, Peter Thiel and this guy Max Levchin.— cbian (@CbianBen) October 9, 2020
Should I buy Affirm stock IPO?
Affirm targets a fast-growing segment of the fintech sector: consumer loans. For consumers, Affirm promises an easy path to buy now and pay later and the message is resonating with people. The company doubled its customers to 5.6 million between July 2020 and November 2019.
For merchants, Affirm says it can help them improve overall sales increase purchase rates. It has attracted some 6,000 merchant partners, including Shopify, Peloton, Purple, iRobot, and The Real.
2/ The distribution model – lending delivered at the point of sale – was an underestimated innovation. Affirm’s strong value prop to merchants has translated into fast sales cycles, sticky merchant relationships, and transformative partnerships, such as @Shopify— Merritt Hummer (@merritthummer) October 9, 2020
4/ This is a fundamentally different and more attractive model than alternative lenders of the past, and we will soon find out how much the public markets will reward that— Merritt Hummer (@merritthummer) October 9, 2020
Affirm IPO may appeal to investors seeking more exposure to the fintech industry. Further, an investment in Affirm offers a second chance to investors who missed out on the PayPal and Square IPOs and those who can’t access Ant Group IPO, which is taking place in China. Affirm founder Max Levchin is among the group that started PayPal, which also includes Tesla CEO Elon Musk and billionaire investor and Facebook board member Peter Thiel.
Who can access the Affirm stock IPO and where?
As Affirm is currently a private company, you may not be able to invest in it directly right now unless you meet the requirements of an accredited investor. However, all interested investors regardless of their net worth will be able to buy Affirm stock once it goes public.
How to buy Affirm stock IPO on Robinhood
Robinhood offers a pre-IPO stock purchase tool that may be ideal for investors looking to buy Affirm stock IPO. Further, Robinhood allows you to start investing with as little as $1 thanks to its fractional share purchase feature.
To be able to buy Affirm stock IPO on Robinhood, you’ll first need to open a Robinhood trading account and fund it. Robinhood offers several account types and investors can choose what best suits them.