Debt collection firm Jefferson Capital made a strong entrance on the Nasdaq Thursday, reaching a valuation of $1.2 billion after its stock surged 26.7% in its public debut—marking renewed interest in IPOs with solid financial footing.
Shares of the Minneapolis-based consumer debt collector opened at $19, well above the IPO price of $15. The company, along with some existing shareholders, raised $150 million by offering 10 million shares.
The broader U.S. IPO market is showing signs of life following earlier disruptions sparked by President Donald Trump’s shifting trade policies, which had unsettled investors and stalled listings earlier this year.
“The rebound is likely to be selective, led by high-quality and long-anticipated issuers,” said Lukas Muehlbauer, research associate at IPOX.
Jefferson Capital’s revenue growth has been consistent, with total revenue increasing 34.1% year over year to $433.3 million in 2024, continuing a pattern of steady gains since 2019.
The company’s performance follows a string of successful IPOs, including those of cancer diagnostics company Caris Life and insurance tech firm Slide Insurance, both of which delivered strong first-day trading results.
Earlier this month, stablecoin issuer Circle Internet and neobank Chime also impressed investors with their debuts. However, others like eToro, Voyager, and Omada, despite initial buzz, are now trading below their opening prices.
“The initial pop is often fueled by the scarcity of an allocation, while the subsequent trading helps establish a more sustainable, long-term market price. Ultimately, this dynamic is less about fading interest and more about the market undertaking a healthy process of price discovery,” Muehlbauer added.
Founded in 2002, Jefferson Capital specializes in purchasing and managing unpaid consumer debt across the U.S., Canada, the UK, and Latin America. It works with banks, credit card companies, and other lenders to help recover outstanding debts.
The company faces competition from firms like PRA Group and Encore Capital Group in its primary U.S. market. Jefferson was acquired by private equity firm J.C. Flowers in 2018.
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