Wealthfront Seeking $485M in Funding Via IPO

Core Insights - Wealthfront Corp. is seeking to raise $485 million through an IPO, planning to market shares at $12 to $14 each [1][2] - The company aims for a market value of approximately $2.05 billion based on outstanding shares [2] - Wealthfront has $88.2 billion in platform assets as of July 31, and reported a net income of $60.7 million on revenue of $175.6 million for the first half of the year [3] Financial Performance - For the six months ending July 31, Wealthfront's net income decreased from $132.3 million to $60.7 million year-over-year, while revenue increased from $145.9 million to $175.6 million [3] - The company recorded a $13.3 million provision for income tax in the latest period, compared to a tax benefit of $54.1 million in the same period the previous year [4] - Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 16% year-over-year [4] Market Context - The IPO follows a trend of fintech firms going public, although some, like Klarna and Chime, have seen their stock prices fall below IPO levels [4] - Wealthfront's previous acquisition attempt by UBS Group AG for $1.4 billion was abandoned in 2022 [5] - The IPO is being led by Goldman Sachs and JPMorgan Chase, with plans to trade on the Nasdaq under the symbol WLTH [6]