Blend Labs, Inc. launched its initial public offering of 20 million shares of Class A common stock on the New York Stock Exchange, starting at $18 per share and crossing the $20-per-share threshold in early action on the floor.
The IPO brought in $360 million for the digital lending firm, valuing it at $4 billion.
The underwriters of Blend’s initial public offering will also have a 30-day option to purchase up to 3 million additional shares of its Class A common stock, which is trading on NYSE through July 20 under the symbol “BLND.”
PYMNTS spoke with Blend Head of Finance Marc Greenberg earlier this year, soon after the company announced it had acquired property title and insurance settlement company Title365.
The addition of title insurance and settlement services will allow Blend to automate functions that would have been done manually using pens and paper. The company launched in 2018 with a digital homeowner’s insurance offering and added the Blend Close digital closing solution last year.
In an interview with PYMNTS last year, Blend Co-Founder and CEO Nima Ghamsari said the company’s origins go back to the aftermath of the great recession.
“I had a couple of realizations,” he told PYMNTS. “One was there’s a huge scale here where the numbers of consumers who can be affected and the scale of the monetary impact that [these lending decisions] can have on them is so great. The other was that the bank technology that was being used to do this — to make those decisions, was extremely paper and human intensive.”
Goldman Sachs & Co. LLC, Allen & Company LLC and Wells Fargo Securities, LLC are lead book-running managers for Blend’s IPO. KeyBanc Capital Markets, Truist Securities and UBS Investment Bank are acting as book-running managers and Piper Sandler, William Blair, Canaccord Genuity, Drexel Hamilton, Loop Capital Markets and Ramirez & Co., Inc. are acting as co-managers for Blend’s IPO.
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