Figure Technology Solutions has formally launched its long-awaited preliminary public providing that would carry over $508 million in gross proceeds to the corporate if the overallotment is exercised.
The firm is providing over 21.46 million shares, with an overallotment of three.95 million shares.
In addition, 4.85 million shares are being offered by present stockholders in Figure, which won’t obtain any of the proceeds. The largest of these sellers, in line with the S-1 prospectus submitting are Ribbit Capital IV, promoting 1.8 million of its 16.1 million shares; and Mike Cagney, Figure’s co-founder and chairman, promoting 1.5 million of his 12.7 million Class A shares. Expected pricing for the providing is between $18 per share and $20 per share.
But Cagney nonetheless owns all the Class B inventory in the corporate, which has 10 votes per share. As a end result, after the IPO is accomplished, Cagney can have 69.2% of the voting energy in Figure Technology.
The registration assertion mentioned Cagney may even be getting a “founder retention award” for 4 years after the IPO. “We firmly consider Mr. Cagney’s retention is of paramount concern, with consideration given to his important function in reaching our long-term technique and our purpose to ship significant worth to our stockholders,” the S-1 mentioned.
Figure has utilized to Nasdaq to listing the Class A inventory utilizing the FIGR ticker image.
Goldman Sachs & Co., Jefferies and B of A Securities are performing as joint lead bookrunning managers, whereas Societe Generale, Keefe, Bruyette & Woods and Mizuho are bookrunners for the proposed providing. Texas Capital Securities, Needham & Company, Piper Sandler, FT Partners, KKR and Roberts & Ryan are the co-managers.
Figure earned $29.4 million in the primary half of 2025, following its full 12 months 2024 web earnings of $20 million, the prospectus mentioned. As of June 30, it had stockholders’ fairness of $404 million and an gathered deficit (cumulative monetary losses over its lifetime) of $292 million. In the primary half of 2024, Figure misplaced $13.4 million.
The prospectus notes that Figure’s income is considerably derived from its dwelling fairness line of credit score product and its mortgage origination system expertise providing. It originates HELOCs for each companions by means of a wholesale association and its personal model. It additionally does private-label originations.
The highway to going public has had its share of twists. In late 2022, Cagney began a particular function acquisition firm which signed a non-binding letter of intent to amass a warehouse lender and financial institution holding firm. But weeks later, the SPAC elected to wind-down operations as of the tip of that 12 months.
In July 2023, Cagney introduced plans to do an IPO for its lending enterprise someday in 2024; the briefly named “LendCo” would have a valuation of $2.5 billion.
In April 2024, reportedly as a part of the IPO course of, Figure Technology employed Michael Tannenbaum, a former Brex and SoFi government as its new CEO. At that point, Cagney grew to become government chairman.
This adopted a confidential submitting of an S-1 with the Securities and Exchange Commission in March 2024. Just prior, Figure break up out its lending unit right into a stand-alone firm.
Reportedly, a extra stringent regulatory setting at the moment contributed to the choice to postpone the IPO.
But a month in the past, Figure disclosed it filed a brand new confidential S-1 registration assertion, step one in going public. Reversing its earlier course, it recombined the lending enterprise and the expertise enterprise.
