Robo Advisor Wealthfront, Backers Seeking $485M in IPO

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(Bloomberg) -- Wealthfront Corp. and immoderate of its shareholders are seeking to rise $485 cardinal arsenic the robo-advisory steadfast seeks to spell public.

The Palo Alto, California-based institution plans to marketplace shares for $12 to $14 each, according to its filing connected Tuesday with the US Securities and Exchange Commission. Wealthfront is offering 21.47 cardinal shares, portion immoderate of its backers are offering 13.15 cardinal shares. 

At the apical of that range, Wealthfront would person a marketplace worth of astir $2.05 cardinal based connected the outstanding shares listed successful its filing. Funds tally by BlackRock Inc. and Wellington Management whitethorn bargain up to $150 cardinal of IPO shares, according to the filing. 

Wealthfront is champion known for its automated investing products and an online level that’s attracted younger customers. The fintech besides offers different bank-like services, including high-yield savings accounts. It has $88.2 cardinal of level assets arsenic of July 31, the filing shows.

The institution had nett income of $60.7 cardinal connected gross of $175.6 cardinal for the six months ended July 31, compared with nett income of $132.3 cardinal connected gross of $145.9 cardinal a twelvemonth earlier, according to an earlier filing.

Net income successful the six-month play to July 31 included a $13.3 cardinal proviso for income tax, versus a taxation payment of $54.1 cardinal successful the corresponding play successful 2024, the filing shows. Wealthfront’s adjusted net earlier interest, taxes, depreciation and amortization accrued 16% twelvemonth implicit year.

The listing follows a fig of fintech firms, specified arsenic Klarna Group Plc and Chime Financial Inc., though some person sunk beneath their IPO prices. Auto concern level Lendbuzz Inc. and security tech steadfast Ethos Technologies Inc. person besides filed for imaginable listings. 

UBS Group AG agreed successful 2022 to get Wealthfront for $1.4 cardinal to broaden its high-net-worth lawsuit base, but abandoned the woody aboriginal that year.

Read More: UBS Abandons $1.4 Billion Deal for Robo-Advisor Wealthfront

Wealthfront had antecedently filed confidentially for an IPO, according to an announcement successful June. The company’s investors see Tiger Global, which has a 19.7% involvement earlier the offering, DAG Ventures with 12.3% and Index Ventures with 11.5%, the filing shows.

The offering is being led by Goldman Sachs Group Inc. and JPMorgan Chase & Co. The institution plans for its shares to commercialized connected the Nasdaq Stock Market nether the awesome WLTH.