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(Bloomberg) — Jefferson Capital Inc. and some of its backers raised $150 million in an initial public offering, pricing shares at the bottom of the range.
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The company, which buys charged-off consumer debt, and the investors sold 10 million shares for $15 apiece, according to a statement Wednesday. The shares were marketed in a range of $15 to $17 each, an earlier US Securities and Exchange Commission filing showed.
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At the IPO price, the company has a market value of $972 million based on the outstanding shares listed in its filing. The company had offered 625,000 shares and the investors were offering 9.375 million shares.
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The company’s largest investor is private equity firm JC Flowers & Co., which acquired a majority stake in 2018, and has beneficial ownership of 81.7% of the shares, the filing shows. The buyout firm’s funds are expected to have about 68.9% of the voting power after the IPO.
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Founded in 2002 by Chief Executive Officer David Burton, Jefferson purchases bundles of consumer debt from products such as credit cards and auto loans. It competes to purchase debt with companies such as PRA Group Inc. and Encore Capital Group in both the US and the UK.
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The company outsources aspects of collections such as running call centers and focuses instead on performance data and data analysis, and has been profitable every year since its inception.
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Jefferson had net income of $64.2 million on revenue of $154.9 million for the three months ended March 31, compared with net income of $32.9 million on revenue of $99.9 million in the same period a year earlier.
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The company is active primarily in the US, Canada, the UK and Latin America, and had $723 million of investment activity as of the end of 2024. Its US deployments accounted for more than three-fourths of the total.
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The offering is being led by Jefferies Financial Group Inc. and Keefe, Bruyette & Woods. The company’s shares are expected to trade Thursday on the Nasdaq Global Select Market under the symbol JCAP.
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English (US)