Benzinga | Dec 16, 2020 02:29AM EST

Lender Upstart Raises $240M In IPO Priced At Lower End Of Range

Upstart Holdings Inc (NASDAQ:UPST) on Tuesday priced its initial public offering at $20 per share.

What Happened The California-headquartered company is issuing 9 million shares while existing investors offload 3 million shares.

Some of the stockholders have granted underwriters a 30-day option to buy an additional 1,802,353 shares at the IPO price.

Upstart shares will list on the Nasdaq Stock Market with the ticker "UPST" on Wednesday.

A consortium of financial entities will act as the book-runners with Goldman Sachs & Co. LLC (NYSE:GS), BofA Securities -- a division of the Bank of America Corp (NYSE:BAC), and Citigroup Inc (NYSE:C) in the lead.

Why Does It Matter Upstart earlier said it expected to price in the range of $20 to $22.

Upstart's consumer lending platform functions on an automated borrowing process that leverages technologies like artificial intelligence and machine learning. The AI-technology-powered lending portal has handled 620,000 loan transactions and claims a ten times growth in conversion rates. Additionally, it has also reduced the loss rates by 75%.

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