One company that’s been telling people where to put their money for years is about to learn about investing in a new way. NerdWallet (NASDAQ:NRDS), noted for its reporting and resources on personal finance, started trading today on the Nasdaq under the symbol NRDS. The company has spent years telling readers what they can expect regarding everything from credit cards to mortgages to student loan providers. As it begins trading, though, there’s plenty that investors should keep in mind when evaluating the NRDS stock IPO.
How does this stock stack up against others like it? How should investors calculate the risk of investing in it?
According to InvestorPlace contributor Chris MacDonald, the NRDS stock IPO will be one of the week’s most watched. Let’s discuss why.
NRDS Stock IPO: What to Know
- According to a statement released by the company, the IPO will consist of 7.25 million shares of Class A common stock, priced at $18 per share. At this price, the company will end today with a total of $130.5 million from its trading debut.
- In addition to the shares offered in the IPO, underwriters will be granted the opportunity to purchase up to 1,087,500 shares of its Class A common stock. NerdWallet’s valuation is reported to be roughly $1.2 billion.
- The proposal’s lead bookrunners are Morgan Stanley (NYSE:MS), KeyBanc Capital Markets and Bank of America (NYSE:BAC).
- NerdWallet’s content is completely free for all users. Its business model centers around generating revenue through affiliate commissions. To elaborate, it receives a commission when a user signs up for a financial service at another company by clicking on it from a NerdWallet link.
- This year has brought a significant increase in revenue for NerdWallet, specifically a jump of 32% from the previous fiscal year.
- Last year saw NerdWallet acquire established U.K. personal finance company Know Your Money, a clear move to gain a footing in the European market. It also added small business loan provider Fundera to its portfolio, gaining further access to another growing market.
- Since its founding in 2009, NerdWallet has grown to include a consumer base of 160 million, generating more than $150 million in yearly revenue. In four funding rounds, it has raised a total of $105 million.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.