Jefferson Capital IPO Targets $1.1 Billion Valuation!
Jefferson Capital plans to go public in the US. The company is aiming for a valuation of up to $1.1 billion. Private equity firm J.C. Flowers backs it.
In the IPO, the company and some of its investors want to raise $170 million. They are offering 10 million shares, priced between $15 and $17 each. Out of those, Jefferson will sell 625,000 shares. Existing shareholders, including J.C. Flowers, will sell the remaining 9.4 million shares.
One of the Few Public Offerings in This Industry
This is one of the rare initial public offerings (IPOs) from the debt-buying space. Private equity firms are under pressure to return money to their investors. Listing portfolio companies, such as Jefferson Capital, is one way to do that. The IPO market is also looking better lately, helping more companies go public.
Jefferson Capital started in 2002. Its headquarters are in Minneapolis. The company buys and manages debt, including accounts in bankruptcy. It operates in the United States, Canada, the United Kingdom, and Latin America. In 2020, it bought Canaccede Financial Group to grow its Canadian business.
Last year, Jefferson made $433.3 million in revenue. That was 34% higher than the year before. It also earned $128.9 million in profit, representing an increase of over 15%.
The company plans to list on the Nasdaq exchange with the ticker symbol “JCAP.” Jefferies and Keefe, Bruyette & Woods are leading the initial public offering (IPO). Following the deal, J.C. Flowers will retain approximately 69% ownership of the business.
The Jefferson Capital IPO demonstrates how firms in this sector are returning to public markets. It could set the stage for others to follow.