Blend Labs Releases IPO Registration Statement



Blend Labs has taken the next step towards going public with the filing of a filing for the San Francisco-based mortgage technology division.

Back in April, the company announced that applied for confidential registration, which indicates that it plans to conduct an initial public offering.

The SEC filing does not include any amounts other than the bid size placeholder number. However, Blend said it is creating a multi-class structure for its common shares, which will yield Class B shares held only by co-founder and chairman Nima Gamsari, 40 votes per share.

“The multiclass structure of our common shares is designed to ensure that, for the foreseeable future, Mr. Gamsari continues to control or significantly influence our management, which, in our opinion, will allow us to continue to prioritize our long-term objectives rather than short-term results.” – said in the application for registration.

This structure is designed to maintain control of Gamsari until he leaves our company, the 35% ownership threshold is no longer reached or 50 years have passed since the offer was closed.

This 35% ownership threshold is one of the determinants of whether Class B shares are convertible to Class A shares; if issued, class C shares are accounted for in the amount of 35% of equity.

“The issue of Class C common stock to Mr. Gamsari could extend Mr. Gamsari’s term of control over our voting rights and his ability to elect all of our directors and determine the outcome of most of the issues put to a vote by our shareholders by postponing the final conversion of Class B common stock.” , – said in a statement.

Risks highlighted in the statement include rapid revenue growth and Blend’s concentration.

“In 2019 and 2020, our revenues were $ 50.7 million and $ 96 million, respectively, which is in line with a 90% growth rate over last year,” the application said. “We expect our revenue growth to slow down in the future.”

In addition, in 2020, its top five customers accounted for 34% of the company’s revenue. As of December 31, 2020, he had 18 clients generating over $ 1 million in annual revenue, accounting for 53% of his total revenue last year.

The company’s net loss in 2020 was $ 74.6 million, up from $ 81.5 million in 2019. But in the first quarter, Blend lost $ 27.1 million, compared with a $ 16 million loss in the fourth quarter and a $ 22.9 million loss. the same period last year.

Blend plans to list on the New York Stock Exchange under the ticker BLND.

Goldman Sachs, Allen & Company, and Wells Fargo Securities are lead accountancy managers. KeyBanc Capital Markets, Truist Securities and UBS Investment Bank are the ledger managers, while Piper Sandler, William Blair and Canaccord Genuity are co-managing the proposed proposal.

Blend is on the list of mortgage companies that have gone public since the middle of last year.

Examples include HomeLight, which recruited Sean Aggarwal to his board of directors because he considering an IPO, and, who joined the parade special purpose acquisition companymerge, a list that includes At home, America’s Finance; and United Wholesale Mortgage.

Not all companies have realized their plans to go public. Planned IPO of Genworth Financial mortgage insurance company Enact Holdings, was postponeddue to market conditions. Meanwhile, the Angel Oak mortgage was due reduce the planned supplywhen he started trading on June 17th.


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