Wealthfront reveals intentions for IPO and Nasdaq debut

Wealthfront is making strides towards launching its initial public offering and listing shares on the Nasdaq Global Select Market under the ticker symbol WLTH.

The digital wealth management firm submitted a registration statement to the US Securities and Exchange Commission for the public offering.

Reports suggest that Wealthfront aims to achieve a valuation of up to $2.05 billion and raise $485 million by offering 34,615,384 shares priced in the range of $12 to $14 per share. Of these shares, 21,468,038 will be issued by Wealthfront, while 13,147,346 will be offered by existing stockholders.

It’s important to note that the proceeds from the shares sold by stockholders will not be received by the company.

The offering is contingent on the effectiveness of the registration statement filed with the SEC, and no sales or offers will be entertained until the statement becomes effective.

Additionally, Wealthfront is granting underwriters a 30-day option to purchase an extra 5,192,308 shares at the IPO price, excluding underwriting discounts and commissions. The lead book-running managers for the IPO are Goldman Sachs & Co and JP Morgan. Furthermore, Citigroup, Wells Fargo Securities, and RBC Capital Markets are the active book-running managers, with Citizens Capital Markets, Keefe, Bruyette & Woods, A Stifel Company, and KeyBanc Capital Markets acting as co-managers.

Founded in 2008, Wealthfront is a technology-driven financial platform that provides various services such as investing, borrowing, cash management, and financial planning solutions. The company is known for its low-cost diversified portfolios facilitated through automation, delivering solutions swiftly and conveniently to its clients.

In January 2022, UBS, a Swiss private banking giant, had struck a deal to acquire Wealthfront for up to $1.4 billion in cash, a deal that was later mutually terminated that year.