Oportun Financial Hits IPO Targets

September 26, 2019

Oportun Financial Corp., a lender that focuses on low- and moderate-income borrowers, hit the bottom of its IPO target range in an offering that sold nearly $94 million in shares.

The San Carlos-based company's stock rose by as much as 9 percent in early trading on its first day on the Nasdaq with the symbol of "OPRT."

It is the 31st IPO from the Bay Area this year, the third time in the past decade that 30 or more companies from the region have gone public. There were 34 last year and 35 in 2014.

No other local offerings are lined up on the calendar. But two life science companies — San Francisco-based VIR Biotechnology Inc. and South San Francisco-based Satsuma Pharmaceuticals Inc. — earlier this month disclosed plans to go public soon.

Oportun will get about $70 million from its IPO, with selling shareholders getting the rest of the proceeds. Those who are selling include Madrone Partners, Core Innovation Capital and TPG Progress.

The biggest investors after the IPO will be Institutional Venture Partners, with a 14.4 percent stake; Greylock Partners, with 11.3 percent; Madrone Partners, 10.3 percent; Putnam Investments, 7.2 percent; and Fidelity Funds, 6.4 percent.

Oportun was once known as Progreso Financiero and used to focus on the underserved, underbanked Hispanic community.

It now focuses on an estimated 100 million people living in the United States who are known as "credit invisibles" because they do not have a credit score, along with others who may have a limited credit history. Oportun says the latter are “mis-scored” because traditional credit scores do not properly reflect their creditworthiness. 

The company raised nearly $500 million in funding, but hasn't done a round since 2015, according to PitchBook Data. It was reportedly valued at about $873 million at that time. Oportun's initial market cap going into its first day of trading is around $400 million.