Figure Technology Solutions Submits Draft Registration Statement for IPO of LendCo, Marking Progress Towards Public Traded Entity Status

In a significant step towards becoming a public company, Figure Technology Solutions, the parent company of Figure Lending LLC, submitted a draft registration statement to the U.S. Securities and Exchange Commission for an initial public offering (IPO). The company filed a Form S-1, a standard filing used by companies planning to go public to register their securities. Although specifics such as the number of shares offered and price range were not disclosed, this move marks progress in Figure’s journey towards becoming a publicly traded entity.

The idea of taking LendCo, its lending division valued between $2 billion and $3 billion, public was first hinted at in November when Figure hired Goldman Sachs Group Inc., JP Morgan Chase & Co., and Jefferies Financial Group Inc. to take the division through the IPO process. The initial plan was for LendCo to go public in the first half of 2024. HousingWire reported last week that Figure Lending LLC was operating under FTS, independently of CEO Mike Cagney’s Figure Technologies, in preparation for the public offering.

Despite setbacks such as abandoning a deal with a special purpose acquisition company (SPAC) called Figure Acquisitions Corp., due to financial reasons, and regulatory delays causing a merger with Homebridge Financial Services to fall through in 2022, Figure has managed to originate over $8 billion in home equity lines of credit (HELOCs) and serve over 100,000 households nationwide as of February 24th. With this successful track record under its belt, it appears that Figure is now one step closer to achieving its goal of becoming a publicly traded entity.