Elevate, the subprime lender based in the U.S., is considering launching an initial public offering (IPO) again thanks to the rally in financial stocks since President Donald Trump won the election.
According to The Financial Times, Elevate is mulling the IPO to cash in on an increasingly positive sentiment since Trump’s victory. Since Trump’s win, Bank of America’s shares have increased 50 percent on hopes that President Trump will lower taxes and eliminate a lot of banking regulation. Smaller companies that have been in the crosshairs of the Consumer Financial Protection Bureau (CFPB) have also benefited from the victory of Trump, particularly since Republicans under Trump’s charge are pushing to get rid of the CFPB, arguing it has overstepped its boundaries since it was created in 2010.
Put it all together, and the environment for Elevate is much more welcoming, noted the report, and thus the revisiting of an IPO. According to the report, Elevate is looking to raise around $100 million, which it would use to reduce its debt, costly to the subprime lender. The deal could be priced next week, noted the report.
“The environment has changed; Elizabeth Warren is not in power,” said one person familiar with the initial public offering, reported the Times. The person was referring to the Massachusetts Democrat Senator who has been a big supportive of the CFPB and is a huge critic of Wall Street. “With Trump in office, it is non-prime time.”
The Times noted Elevate’s IPO comes at a time when the U.S. IPO market is starting to see signs of renewal after a weak period. Last year’s market was the slowest period for U.S. IPOs since the financial crisis. The combination of high prices, lower volatility and strong IPO returns is breathing new life into the market, noted the report.
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