Page header cover

Blend goes public on 16th of July

Blend Labs Inc. will be listed on the NYSE under the ticker BLND this Friday, July 16. Blend intends to offer investors 20 million shares at a price of $16–$18 per share and raise $360 million. The company’s capitalisation in this price range will be $3.95 billion.

Blend Labs made a 3 to 1 reverse stock split, which means that the three previously purchased shares are now equal to one, but a price three times higher. Global Technologies Private Portfolio clients purchased Blend shares in February this year for $ 6.99. Therefore, now one share is worth $ 20.97; the number of shares on the fund’s balance sheet decreased threefold.

We assume that the company will raise the upper range of IPO a day or two before the placement. We also expect Blend shares to rise within six months after the placement, while the lock-up period is in place. 

In its S-1 registration form, Blend indicated that its revenues grew by 90% in 2020 — from $ 50.7 million to $ 96 million. An increase in revenues was stimulated by lockdowns, which increased interest in digital financial services and lowered mortgage rates in the United States.

Last year, 59% of mortgage loans were issued to Americans not through traditional banks, but through digital services such as Blend. According to the Protocol, these services make buying a home — a traditionally long and paper-based process — quick and convenient.

Another stimulus for Blend’s future growth is the recent acquisition of Title365. It is a major insurance player that specialises in real estate insurance and transaction assistance. The acquisition will allow Blend to significantly expand its business.

Blend Labs is a fintech company that is transforming the $14 trillion US consumer lending market. In 2020, the platform processed over 1.4 trillion mortgage loans (twice the amount of 2019).

Blend Labs has 285+ customers include Wells Fargo, U.S. Bank, M&T Bank, SWBC, Navy Federal Credit Union. Forbes magazine has included Blend in the list of “50 Most Innovative Fintech Companies 2021”.

Leave your contact details and get expert advice
By clicking the "Request a call" button, you agree to the Data Processing Policy