Sezzle Eyes U.S. IPO
Minneapolis-based Sezzle is already publicly traded in Australia, but the company is now eyeing an initial public offering (IPO) back in the United States.
In an April 29 announcement on the Australian Stock Exchange, Sezzle said it intends to “file a registration statement with the Securities and Exchange Commission for a proposed initial public offering of common stock in the United States.”
For legal reasons, companies generally remained tight-lipped ahead of IPOs. Sezzle is no exception. In its statement with the Australian Stock Exchange, the company said that the number and price of shares to be offered has not yet been determined. The company hasn’t yet revealed how it would use the proceeds of the offering, either.
Positive economic conditions and a surge of cash on Wall Street have prompted several Minnesota companies to file for IPOs this year. So far, three Minnesota companies have gone public in 2021. More are likely to follow.
Sezzle went public in Australia in July 2019. At the time, the company said Australian investors were more familiar with its “buy now, pay later” platform. Sezzle allows customers to buy products immediately and then pay them off over six weeks. The process doesn’t involve credit, which makes it attractive to younger consumers.
Sezzle’s IPO plans came a few days after its biggest competitor, Afterpay, also announced plans to go public in the United States. Like Sezzle, Afterpay is also publicly traded in Australia.
Affirm Holdings, another “buy now, pay later” company, had a successful IPO in the U.S. in January.
Sezzle, whose shares began trading on the Australian Stock Exchange nearly two years ago, became a certified B Corporation in March. The company says its technology is designed to “financially empower the next generation.”
In a recent interview on TCB‘s “By All Means” podcast, Sezzle founder and CEO Charlie Youakim talked about his plans to conquer competitors in the fintech industry.