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GreenSky Could Net $100 Million In IPO

Published 05/09/2018, 11:03 AM
Updated 07/09/2023, 06:31 AM

GreenSky (NASDAQ:GSKY), the Atlanta-based tech company that’s drawing the eyes of investors across the market, has filed for a market debut that could reap in more than $100 million for the company, if investors flock to it during its opening day. The e-commerce firm is looking to ride the wave of digitization that’s currently overtaking retail markets right now, and though the company’s facing a diverse and competitive market, it’s facing some bright prospects on the open market.

Here are the key details behind GreenSky’s forthcoming IPO, and what would-be investors will want to know about the e-commerce platform before they decide to back it.

Investors Are Hungry For FinTech IPOs

It’s worth addressing the current drought of financial-technology firm IPOs right now, and the fact that investors are hungry for a FinTech IPO hasn’t escaped executives at GreenSky, who think they could ride a successful IPO all the way to the bank when it comes to securing capital for future expansion. According to filings made with the SEC by GreenSky, the company is hoping to raise as much as $100 million, but reporting from the Wall Street Journal has indicated that GreenSky’s ambitions just might be far greater than many of its detractors realize.

According to the Journal, for instance, GreenSky could be seeking to raise $1 billion with its IPO if investors truly appear infatuated with the e-commerce company, meaning the FinTech platform could walk away from a market debut with a valuation of up to $5 billion, making it one of the biggest IPOs in recent years. The company has also seen revenue growth swell tremendously in recent years, with the amount of revenue GreenSky takes in soaring from $173 million in 2015 to more than $325 million in 2017. If growth figures like that can be maintained, expect investors to jump aboard GreenSky en masse.

While no pricing terms have been disclosed yet for its stock, GreenSky is likely to gobble up a great deal of attention during its debut, and investors don’t want to let this company fly under the radar and sneak up on them. The online lending company is set to experience some truly tremendous growth in the near-future, and the inspiring story of its CEO, who produced a rags-to-riches tale worthy of Hollywood, is likely to infatuate many of Wall Street. Commercial merchants who rely on GreenSky can help their customers get loans in mere minutes, meaning the platforms widespread adoption across the country could help facilitate the financing of extensive home makeovers and property expansions.
GreenSky walks the narrow line between homeowners, bankers, and merchants who are all involved in the intricate financing that goes on during home renovation and property expansion products, but the company has many corporate partners that will prove to be incredibly useful allies, too. Fifth Third Bank, for instance, which has employed GreenSky to tremendous effect, recently helped the company secure an additional $50 million in private funding that will prove crucial towards its future efforts in the market.

GreenSky’s bank-centric future

Though it’s often known for helping consumers secure loan agreements to fund home renovation products, GreenSky’s future could be determined by major banking institutions as much as it is by the daily consumers who rely on its services. The company’s prospectus notes that one of its greatest risks is the short-term nature of many of the deals it has with established banking behemoths like Fifth Third, but GreenSky likely isn’t biting its fingernails over its partnerships; the company has proven time and time again that those banks which employ its services see immensely positive results, and it’s generating satisfied customers hand over fist.

Fifth Third alone is expecting GreenSky to generate hundreds of millions in additional loans, as institutions that have been relying on the e-commerce platform to facilitate their loans have seen customer satisfaction skyrocket. The company’s expansive merchant network means its future is diversified, and investors don’t have to worry about sudden panics tanking its prospects, but its partnerships with mammoth banking institutions will likely be the thing driving it forward for some time. When other banks see the results GreenSky is generating for Fifth Third, too, they’ll be hungry to get in on the action, and will begin to employ financial tech services with greater gusto themselves. The future of loaning will be determined by aspiring companies like GreenSky, and this company’s hot market debut really can’t be missed by any investor who wants to label themselves tech-savvy. As long as consumers around the country keep pouring money into home repairs and renovations, expect GreenSky to do well; the aspiring FinTech company is gearing up for a hot stakes IPO that could all but ensure its continued presence on the market for years to come.

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