Financial technology company Marqeta (MQ) raised $1.2 billion with an initial public offering that priced high and exceeded expectations. The Marqeta IPO climbed by double-digits as trading began Wednesday.
XThe company priced 45.5 million shares at $27, above the expected range of $20 to $24 and giving it a market valuation near $15 billion.
Marqeta stock jumped 13%, closing at 30.52 on the stock market today.
Marqeta developed a software platform that companies use to launch and manage their own credit cards, which they can issue to their customers or end users to authorize and settle transactions.
Its customers include Square (SQ), DoorDash (DASH) and Instacart.
According to research and advisory firm IPO Boutique, its sources indicated the Marqeta IPO was in extremely high demand.
"Recent FinTech companies to go public have been well-received and this company's metrics, customer base and disruptive penetration in a legacy industry will have eager and interested investors," IPO Boutique said in a note to clients.
Marqeta IPO: Processing Volume Soars
In the first quarter, Marqeta said it processed $24 billion of credit transactions, up 167% from the year-ago period. Square is Marqeta's largest customer, accounting for 70% of net revenue last year.
In addition, Marqeta's total processing volume jumped 177% last year to $60 billion.
The company gathers the majority of its revenue from net interchange fees set by the card networks and paid by card acquirers. For its first quarter, Marqeta showed revenue of $108 million. That's up 123% from the year-ago period. However, it showed a net loss of $12.8 million, vs. a net loss of $14.5 million.
The Marqeta IPO trades Wednesday on the Nasdaq under the ticker MQ. The lead underwriters are Goldman Sachs and JPMorgan.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
YOU MAY ALSO LIKE:
Olo, IBD Stock Of The Day, Holds The Secret Sauce For Food Delivery
IPOs Go Supersonic In First Quarter, Smashing Records Like It's 1999
Get Ready For A Flood Of New Tech Companies, Courtesy Of SPACs
What Is An IPO? Know These Risks and Rewards Of Investing in IPO Stocks
