NEW YORK - Pagaya (NASDAQ:PGY) Technologies Ltd. (NASDAQ: PGY), an artificial intelligence financial infrastructure company, disclosed the pricing of its public offering of 7,500,000 Class A ordinary shares at $12.70 each. The transaction is projected to generate approximately $95 million in gross proceeds before subtracting underwriting discounts, commissions, and estimated offering expenses.
The offering, which is expected to conclude on March 18, 2024, includes a 30-day option for underwriters to acquire up to an additional 1,125,000 shares. Citigroup and Jefferies are serving as the joint book-running managers, while Keefe, Bruyette & Woods, B. Riley Securities, and The Benchmark Company are involved as book-runner and co-managers, respectively.
Pagaya aims to utilize the net proceeds for general corporate purposes and to support future growth, potentially covering working capital expenses and associated investments.
This offering comes on the heels of a shelf registration statement on Form F-3 filed with the SEC on October 4, 2023, which became effective on October 16, 2023. The offering will be conducted through a prospectus supplement and the accompanying prospectus, with the preliminary prospectus supplement already filed with the SEC on March 13, 2024.
Pagaya, with offices in New York and Tel Aviv, leverages machine learning and AI to provide consumer credit and residential real estate solutions. The company's proprietary API and capital solutions are designed to integrate into its network of partners, enhancing user experiences and access to mainstream economic services.
The information in this article is based on a press release statement from Pagaya Technologies Ltd.
InvestingPro Insights
Pagaya Technologies Ltd. (NASDAQ: PGY), despite recent market fluctuations, is navigating through a significant phase of its business trajectory. With the latest public offering aimed at bolstering the company's growth and capital, it's important for investors to consider a few key metrics and insights provided by InvestingPro.
The market has been responsive to Pagaya's moves, with real-time data showing a market capitalization of $976.82M. The company's revenue growth is notable, with an 8.43% increase over the last twelve months as of Q4 2023, and an even more impressive quarterly revenue growth of 13.04% in Q4 2023. This suggests that Pagaya's business is expanding, despite the challenges it faces.
InvestingPro Tips highlight that two analysts have recently revised their earnings upwards for the upcoming period, indicating potential optimism in Pagaya's financial outlook. Additionally, while the stock price has experienced significant volatility over the past week and six months, with a 13.83% drop in the last week alone, analysts predict the company will be profitable this year. This could be an essential factor for investors considering the long-term potential of Pagaya's stock.
However, it's worth noting that Pagaya is not currently profitable, with a negative P/E ratio of -7.34, and does not pay a dividend to shareholders, which could be a consideration for income-focused investors.
For those interested in a deeper analysis, InvestingPro offers additional insights and tips on Pagaya Technologies Ltd. at https://www.investing.com/pro/PGY. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover many more InvestingPro Tips that can guide your investment decisions.
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