Payments Processor Marqeta Raises $1.23 Billion in IPO

Marqeta Inc., an online card and payment processing company, raised $1.23 billion after pricing its initial public offering above a marketed range.

The Oakland, California-based company sold 45.5 million shares for $27 apiece on Tuesday, according to data compiled by Bloomberg. Marqeta had marketed the shares for $20 to $24 each.

Marqeta offers physical and virtual debit, credit and prepaid cards. Its customers include a technology-enabled companies like Uber Technologies Inc., Doordash Inc. and Instacart Inc. Uber is also a backer of the company through the holding of a stock warrant.

At $27 a share, the company has a market value of $14.3 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission. Its diluted value, which includes options, restricted stock units and warrants, is at least $15 billion.

Founded in 2010 by PropertyBridge co-founder Jason Gardner, the company reported $108 million in revenue in the first quarter of the year, more than doubled the same period in 2020. Its net loss narrowed to $12.8 million versus $14.5 million last year.

Payments company Square Inc. is Marqeta’s largest customer, accounting for 70% of its net revenue in 2020, according to its filings.

Marqeta’s backers include 83North II, Coatue, Iconiq, Granite Ventures, and Discover Financial services, according to its filings.

JPMorgan Chase & Co, one of the lead underwriters of the offering, uses Marqeta to enable its commercial credit card customers to use their cards on digital wallets such as Apple wallet.

Goldman Sachs Group Inc. and JPMorgan are leading the share sale. Marqeta’s shares are expected to begin trading Wednesday on Nasdaq Global Select Market under the symbol MQ.

©2021 Bloomberg L.P.

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