On October 27, 2021 — NerdWallet, a consumer financial advice website, has filed to raise $131 million in an IPO.
|Financial Services||2009||San Francisco, US||$ 500M|
Here’s what you need to know:
- What is an IPO?
- What is NerdWallet?
- How to buy NerdWallet IPO stock? – detailed instructions.
- NerdWallet IPO details – NerdWallet IPO date, price etc.
- What brokers provide access to the NerdWallet IPO?
What is an IPO?
When a private company or a startup first sells its shares to the general public, this process is known as an Initial Public Offering (IPO). An IPO means that a company's ownership is transferred from private ownership to public ownership. That is why the IPO process is called "going public".
Why go public? The primary benefit of going public is easier access to capital, but there are more reasons for that. If you want to learn more - here we answered frequently asked questions about IPOs in simple terms.
What is NerdWallet?
NerdWallet builds online tools that provide information, insights, and advice about personal finance to consumers. It offers guidance to consumers through educational content, tools and calculators, product marketplaces, and the NerdWallet app. The company helps consumers to navigate across financial products, including credit cards, mortgages, insurance, personal loans, banking, investing, and student loans.
NerdWallet Business Details and Financials Before IPO
Founded in 2008, the company's products include popular personal finance management applications. Users of the platform receive personal financial and investment advice, educational content, financial advice on banking, insurance, investing, and a financial product calculator. The app is used not only by individuals, but also by financial institutions that promote their services to an interested audience.
With the NerdWallet product, consumers can find the right financial solution for their needs. On average, the app was used by about 16 million users per month in 2020, and 21 million per month in 2021. Before going public, the startup managed to raise $105 million.
In the first half of 2021, NerdWallet's revenue grew 32% to $181.6 million instead of $137.3 million, while the startup's expenses also grew 60% - from $135.9 million to $217.5 million. As a result, the company ended the half-year without profit for the first time in several years, while its net loss was $26.8 million. Until then, Nerdwallet was considered one of the few profitable startups: the company reported a net profit of $5.3 million in 2020 and $24.2 million in 2019. Amid the growing popularity of digital financial instruments, NerdWallet has a good chance to correct the situation and achieve an increase in net profit in 2022.
NerdWallet Prospectus SEC S-1 form
NerdWallet's top competitors include Credit Karma, Mint, Credit Sesame and FeeX.
Is NerdWallet Stock Publicly Traded?
Yes, NerdWallet is a public company now.
NerdWallet's Key People
NerdWallet's Chief Executive Officer and Chairman is Tim Chen.
NerdWallet pre-IPO Investors
NerdWallet's top pre-IPO investors include – Silicon Valley Bank, Liquid2 Ventures. NerdWallet has raised $105 m in total funding across 2 funding rounds for a $520 m valuation.
How to Participate in NerdWallet IPO Before Shares Hit the Public Market
In the past, Initial Public Offerings as a profitable investment type were only available to big funds or elite customers of major brokerage firms or banks and it was hard (almost impossible) for retail investors to gain access to IPOs. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market.
Luckily, technologies and marketplaces changed the rules of the game, now average investors can participate in IPOs. Brokers adjusted accordingly, making access to IPOs more affordable now.
Step-by-Step Guide How to Buy NerdWallet IPO Stock at Its Offer Price
- Check the NerdWallet IPO details. Always Do Your Own Research (DYOR) for the company that is going for IPO first.
- Find a broker. You need a broker that can provide you access to the IPO. You can use our tool attached below that helps to match investors with available IPO brokers in your area. Just click "FIND IPO BROKERS" button below to see brokers that offer access to NerdWallet IPO.
- Check eligibility criteria. Each broker has its own eligibility criteria, like account minimum which can vary widely.
- Create trading account. For KYC you need to prepare your identity document (valid passport or driving license) and a document confirming the address of residence (utility bill). Note, this procedure may take 1-3 days as it's better to prepare your account in advance.
- Deposit your account. To participate in an IPO, your account must have available funds in the amount you send IPO application for. Note, this procedure may take 1-3 days as it's better to prepare your account in advance.
- Request NerdWallet shares. Assuming you meet the requirements for participating in this IPO, your next step will be to request a certain number of shares in the IPO. Note, you may not be allocated all the IPO shares you offer to buy.
- Wait for allocation. The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
Note: Many IPO purchases come with a lock-up period, usually 90 or 180 days. You will not be able to sell your shares until this period expires.
What Brokers Offer Access to this IPO?
How to Invest After NerdWallet IPO at Its Opening Price
The most conservative way to buy NerdWallet stock would be to wait for the IPO and buy the shares on the public stock market. You can do this through the same brokers that provide access to IPOs or a trading app. Most of them have a stock trading functionality. Though, you won’t get in at the low price offered by pre-IPO.
How is NerdWallet going public?
NerdWallet announced it will go public via a traditional initial public offering, or IPO. No SPACs here.
When will be the NerdWallet IPO date?
NerdWallet IPO date is Nov 6, 2021.
What will be the NerdWallet IPO price?
NerdWallet IPO price range is $17 to $19 a share.
How many NerdWallet shares will be available for its IPO?
NerdWallet's number of shares is 7.25 millions.
What stock exchange will NerdWallet trade on?
NerdWallet will be traded on Nasdaq.
What Is the NerdWallet Stock Ticker?
NerdWallet stock symbol is NRDS