Robo Advisor Wealthfront, Backers Seeking $485M in IPO

Core Viewpoint - Wealthfront Corp. and its shareholders are aiming to raise $485 million through an initial public offering (IPO) as the company seeks to go public [1] Company Overview - Wealthfront, based in Palo Alto, California, plans to price its shares between $12 and $14 each, offering 21.47 million shares, while some backers will offer an additional 13.15 million shares [2] - At the upper end of the pricing range, Wealthfront's market value would be approximately $2.05 billion based on outstanding shares [3] - The company is recognized for its automated investing products and has attracted a younger customer base, also offering high-yield savings accounts [4] Financial Performance - As of July 31, Wealthfront reported $88.2 billion in platform assets, with a net income of $60.7 million on revenue of $175.6 million for the first half of the year, compared to a net income of $132.3 million on revenue of $145.9 million in the same period the previous year [4] - The net income for the six-month period included a $13.3 million provision for income tax, contrasting with a tax benefit of $54.1 million in the corresponding period in 2024 [5] - Wealthfront's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 16% year over year [5] Market Context - The IPO follows a trend of fintech firms going public, although some, like Klarna Group Plc and Chime Financial Inc., have seen their stock prices fall below IPO levels [6] - Wealthfront had previously been in talks for acquisition by UBS Group AG for $1.4 billion, a deal that was ultimately abandoned [6] - The offering is being led by Goldman Sachs Group Inc. and JPMorgan Chase & Co., with plans for shares to trade on the Nasdaq under the symbol WLTH [7]