Figure Technology Solutions takes another step to become public

Figure Technology Solutions (FTS), the parent company of Figure Lending LLC, took another step this week to become a public company, just one week after announcing a reorganization of its enterprise structure. 

On Wednesday, the company said it “has confidentially submitted a draft registration statement” with the U.S. Securities and Exchange Commission (SEC) regarding the proposed initial public offering of its equity securities. It submitted a Form S-1, an SEC filing used by companies planning on going public to register their securities.

“The number of shares to be offered and the price range for the proposed offering have not yet been determined,” the company said in a statement. No other details were provided.

News of a potential public offering began to filter out in November, when Figure hired Goldman Sachs Group Inc.JP Morgan Chase & Co. and Jefferies Financial Group Inc. to take its lending division, LendCo, public.

At that time, Bloomberg reported that LendCo, which was valued between $2 billion and $3 billion, was expected to go public in the first half of 2024, according to people familiar with the matter.

Last week, HousingWire reported that Figure Lending LLC was operating under the umbrella of FTS, independent of CEO Mike Cagney’s Figure Technologies, in preparation for going public. 

It’s not the first time the company has planned to go public. 

Founded in 2018 by Cagney, the former head of SoFi, Figure planned to merge with a special purpose acquisition company (SPAC) called Figure Acquisitions Corp. after four years.

The deal was scrapped due to higher interest rates and rising redemption rates, which point to how many investors are exchanging their shares to get their money back. The blank check company was delisted from the New York Stock Exchange in December 2022.

Figure also failed to merge with Homebridge Financial Services in 2022 due to regulatory delays. The following year, CMG acquired Homebridge’s retail assets.  

According to its website, Figure has originated more than $8 billion in home equity lines of credit (HELOCs) as of February 2024 and has served at least 100,000 households nationwide. 

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