Consumer Collections Firm Jefferson Capital Targets Up to $1.1B Valuation in Upcoming IPO
Jefferson Capital, Inc., a firm specializing in acquiring charged-off and insolvent consumer accounts, has set a price range of $15 to $17 per share for its upcoming initial public offering (IPO). At the high end of this range, the company, with 64.8 million shares outstanding, would achieve a valuation of approximately $1.1 billion.
The IPO includes 625,000 shares offered by Jefferson Capital and 9.375 million shares from selling shareholders. J.C. Flowers, the majority shareholder with an 81.7% stake, is offering 7.76 million shares, while entities affiliated with Canaccede are selling 1.61 million shares. If the overallotment option is fully exercised, CEO David Burton will sell 424,296 shares. Post-IPO, J.C. Flowers’ ownership would decrease to 67.5% if the overallotment is fully utilized.
At the top of the price range, Jefferson Capital expects to raise net proceeds of approximately $10.6 million, while at the midpoint, net proceeds are estimated at $3.7 million. The company plans to allocate roughly $3.7 million to repay any outstanding borrowings under its revolving credit facility, with any remaining funds designated for general corporate purposes.
The company intends to list on the Nasdaq under the ticker symbol “JCAP.” The offering is managed by a syndicate of joint bookrunners, including Jefferies, Keefe Bruyette Woods, Citizens JMP, Raymond James, Truist Securities, Capital One Securities, DNB Markets, Regions Securities, and Synovus Securities. The IPO is anticipated to price this week.