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”.