Jefferson Capital valued at $1.2 billion after strong Nasdaq debut

Private equity-backed Jefferson Capital has secured a valuation of $1.2 billion after its shares rose 26.7% in their Nasdaq debut on Thursday, signaling a steady recovery in investor appetite for listings with strong fundamentals.

 

The consumer debt collector's shares opened at $19 apiece, above its offer price of $15 per share. The Minneapolis, Minnesota-based company and some existing investors raised $150 million by selling 10 million shares in the IPO. 

The US IPO market has recovered in recent weeks after President Donald Trump's shifting trade policies rattled investors and froze new listings earlier this year. 

The rebound is likely to be selective, led by high-quality and long-anticipated issuers, IPOX research associate Lukas Muehlbauer said. 

Jefferson's total revenue jumped 34.1 per cent to $433.3 million in 2024 compared with the previous year, continuing a steady trajectory since 2019. 

The debut mirrors strong first-day performances last week of cancer diagnostic firm Caris Life and Slide Insurance .

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Chime also made stellar debuts earlier this month. But companies such as eToro, Voyager, and Omada, hot on debut, are trading below opening price as of last close. 

"The initial pop is often fueled by the scarcity of an allocation, while the subsequent trading helps establish a more sustainable, long-term market price. Ultimately, this dynamic is less about fading interest and more about the market undertaking a healthy process of price discovery," said Muehlbauer. 

Founded in 2002, Jefferson purchases and manages unpaid consumer debts in the U.S., Canada, UK and Latin America. It helps banks, credit card issuers and other lenders recover debt. 

The company, which competes with PRA Group and Encore Capital Group in its core U.S. market, was acquired by U.S.-based private equity firm J.C. Flowers in 2018.