UPDATE 2 – Mortgage-focused software startup Blend wants to IPO $ 4 billion in the US

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July 6 (Reuters) – Blend Labs Inc, a digital banking platform focused on mortgages, aims to value its initial public offering (IPO) in the U.S. at nearly $ 4 billion, aiming to capitalize on the boom in online financial services demand.

Blend intends to sell 20 million shares at prices ranging from $ 16 to $ 18 each to raise up to $ 360 million, it said in a revised statement on Tuesday.

The company, which privately applied for a listing in April, was last valued at $ 3.3 billion after a funding round in January.

Blend’s cloud-based software platform digitizes banking operations, making it more convenient for customers to take money or deposit cash.

On average, more than $ 5 billion in transactions are processed through the platform of the San Francisco-based company every day. It had 291 clients as of last year, including Wells Fargo & Co and Lennar Mortgage.

The filing takes place after the busiest week of the year for a US IPO, with more than a dozen companies entering the stock markets.

Chinese giant Didi Global Inc made its debut last week and online brokerage Robinhood Markets Inc announced its IPO filing.

Low interest rates caused by last year’s pandemic have boosted the demand for mortgage insurance. The filing says higher interest rates could hurt demand for the Blend platform.

The company said that Blend was co-founded in 2012 by Nimoy Gamsari, its current CEO and a former employee of analytical giant Palantir Technologies Inc.

Timothy Mayopoulos, the former CEO of mortgage company Fannie Mae, is the president of the startup.

Goldman Sachs & Co, Allen & Company and Wells Fargo Securities are the leading underwriters of the IPO. Blend will be listed on the New York Stock Exchange under the symbol “BLND”. (Reporting by Niket Nishant in Bangalore; editing by Vinaya Dwivedi)



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