Wealthfront has outlined plans for a US initial public offering that could value the automated wealth management firm at up to USD 2.05 billion. The move would follow a period in which a number of fintech companies have returned to public markets after the slowdown caused by earlier economic and policy uncertainty. The company aims to raise as much as USD 485 million through the sale of 34.6 million shares, a part of which will come from existing holders.
The proposed price range is set between USD 12 and USD 14 per share. Wealthfront intends to list its stock on the Nasdaq under the ticker ‘WLTH’. Institutions involved in arranging the offering include Goldman Sachs, J.P. Morgan and Citigroup.
General fintech listing activity
Recent fintech floats, including those involving Klarna, Chime and eToro, have attracted notable investor interest, showcasing improving sentiment across US capital markets. Analysts have linked this shift to expectations that the Federal Reserve may ease interest rates, which has encouraged greater participation in new share sales.
Wealthfront was founded in 2008 and offers automated financial tools such as cash accounts, exchange-traded fund portfolios and bond-related products. The company also provides trading features and access to relatively low-cost borrowing.
The company’s valuation has fluctuated in recent years. In 2022, it was assessed at about USD 1.4 billion during discussions over a potential acquisition by UBS. The Swiss bank ultimately decided not to proceed after reported objections from some shareholders over the proposed terms.
If completed, the offering would place Wealthfront among a lineup of fintech companies looking for additional capital to expand operations and respond to new investor interest in the sector. The outcome of the listing will also provide another indicator of the durability of the recent recovery in US IPO activity.
