CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

FinWise Bancorp (FINW) stock price rises 21.4% on opening day

By Monte Stewart


Updated

FinWise Bank maintains a full-service banking location in Sandy, Utah
US bank holding company FinWise Bancorp’s stock price mushroomed Friday as shares began trading on Nasdaq. - Photo: FinWise Bancorp

US bank holding company FinWise Bancorp’s stock price rose quickly Friday as shares began trading on the Nasdaq Global Stock Market.

FinWise closed up 21.24%, or $2.23, at $12.73 as the company sold 3.5 million shares at $10.50 per share on its IPO, according to a company release.

The company granted the underwriters a 30-day option to purchase 525,000 shares of common stock at the IPO price, less the underwriting discount. If the underwriters fully exercise their option, FinWise will receive $5.1m more in gross proceeds.

Proceeds to fund growth

The company said it intends to use net proceeds to fund growth, continue the buildout of infrastructure, and for general corporate expenses that could include acquisitions, maintenance of capital levels required by regulators, and other growth efforts.

Piper Sandler & Co. and Stephens Inc. acted as joint bookrunning managers.

FinWise is a nationwide lender to and takes deposits from consumers and small businesses, according to its website. The Bank operates through its wholly-owned subsidiary, FinWise Bank, that operates one full-service banking location in the Salt Lake City suburb of Sandy, Utah, and a loan production office in Rockville Centre, New York.

US100

15,946.40 Price
-0.280% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8

XRP/USD

0.63 Price
+0.600% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

Gold

2,099.81 Price
+1.410% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee 0.0111%
Overnight fee time 22:00 (UTC)
Spread 0.50

Oil - Crude

74.76 Price
+0.330% 1D Chg, %
Long position overnight fee -0.0136%
Short position overnight fee -0.0083%
Overnight fee time 22:00 (UTC)
Spread 0.030

Company had $330.1m assets in March

On a consolidated basis, FinWise had $330.1m (£245.52m) in assets, loans of $245.2m, including $65.9m of US paycheque protection programme loans, $188.5m in deposits, and $52.3m in shareholder equity as of 31 March 2021, according to the company’s IPO registration statement.

FinWise was founded as a community bank in 1999. The company is headed by CEO Kent Landvatter, who has more than four decades of financial industry experience.

He previously led two de novo, or newly chartered, banking businesses – Comenity Capital Bank and Goldman Sachs Bank, USA.

Read More: Samba TV releases details of upcoming $75m IPO

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading