Jefferson Capital IPO: shares of the debt collector of written-off and bankruptcy debts became available

Shares of US-based Jefferson Capital, which buys and collects distressed consumer and receivables, have become available to investors in the Freedom client trading system. The securities are listed under the ticker JCAP.US. They will appear on the Nasdaq exchange in a few hours.

Jefferson Capital raised $150 million in its IPO, setting its price per share at $15 - at the lower end of its previously announced target range. That valuation brought the company's market capitalization to $972 million, counted by Bloomberg. 

Jefferson Capital had originally hoped to raise $160 million on the exchange by offering 10 million shares at prices ranging from $15 to $17 per paper. The IPO was organized by Jefferies, Keefe Bruyette Woods, Citizens JMP, Raymond James, Truist Securities, Capital One Securities, DNB Markets, Regions Securities and Synovus Securities.

Jefferson Capital was founded in 2002. The company describes itself as one of the leading players in the market - an analytically-oriented buyer and manager of written-off and bankruptcy debt. It operates in the US, Canada, the UK, and Latin America. The company also has an operations center in Mumbai. Jefferson's controlling shareholder is New York-based investment firm J.C. Flowers, which is managed by former Goldman Sachs partner and billionaire J. Christopher Flowers.

Jefferson specializes in buying distressed consumer debt at a discount and then collecting through debtor outreach. Its main focus is installment loans and credit card debt. Its portfolio also includes distressed auto loans and utility debts. The company invests primarily in severely depressed assets, seeking to restore their value by working with borrowers on a case-by-case basis.

The company is profitable: in 2024, its net income increased 15.6% to $128.9 million. Revenue jumped 34.1% to $433 million.

Jefferson Capital may be interesting as an investment with a growth potential of 31% of the IPO price, especially with a stable macro environment, says Freedom Broker analyst Alem Bektemirov. According to him, the main risks for the company's business are «deterioration of economic, political or inflationary conditions» in the markets of presence.

Jefferson Capital's IPO is a rare case of a distressed debt buying company going public, reported Reuters. «Investors looking for companies with a non-traditional profile will be interested in this IPO,» announced Jeff Zell, senior analyst at IPO Boutique, to the agency. According to Zell, the sector Jefferson operates in is not very attractive to the typical IPO investor, but the company has its advantages, including strong financials and a quarterly dividend.

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Freedom clients will be able to trade Jefferson Capital shares before the opening of the main exchange session. Trading will begin in the early pre-market format 2-3 hours before the opening of the US exchanges (from 15:30-16:30 Astana time). To participate click on the ticker JCAP.US.

This article was AI-translated and verified by a human editor