"Wealthfront Corporation is looking to rake in the wealth after going public on Friday. The Palo Alto-based automated digital wealth platform raised $486 million after selling 43.6 million shares, putting the company's valuation at roughly $2 billion. Wealthfront shares began trading on the Nasdaq under the ticker "WLTH." The company made more than 34.6 million shares of common stock available for the IPO for $14 -an offering that expires on Monday, December 15."
"Its filing documents with the Securities and Exchange Commission (SEC) show that the company has $88 billion in assets under management. For the six months ended July 31, it had net income of nearly $61 million on revenue of almost $176 million. In an interview with Yahoo Finance on Friday, Fortunato said that the company will remain competitive in a tight market for a key reason: Wealthfront can offer many of the same services as traditional banks but at lower costs."
Wealthfront raised $486 million by selling 43.6 million shares, valuing the company at roughly $2 billion. Shares began trading on the Nasdaq under the ticker "WLTH," with more than 34.6 million common shares offered at $14 in an IPO expiring December 15. The stock rose about 4% by mid-afternoon after trading began. Company leadership, including CEO David Fortunato and cofounders Andy Rachleff and Dan Carroll, rang the opening bell at Nasdaq MarketSite. Founded in 2008 as KaChing and rebranded in 2011, Wealthfront is known for automated investing appealing to digital natives. The firm offers high-yield savings and plans home lending, reports $88 billion in assets under management, and recorded nearly $61 million net income on about $176 million revenue in the six months ended July 31. Wealthfront can provide many bank-like services at lower costs.
Read at Fast Company
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