(Bloomberg) -- Figure Technologies Inc., the financial technology firm co-founded by former SoFi Technologies Inc. head Mike Cagney, is working with banks including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Jefferies Financial Group Inc. on an initial public offering for its lending arm, according to people familiar with the matter.
Figure is considering taking public its so-called LendCo division in the first half of 2024 at a valuation of $2 billion to $3 billion, said the people, who asked to not be identified because the matter isn’t public. Figure could file imminently for an IPO of the division, which is also a private capital markets business, the people added.
No final decision has been made and the timing and valuation of the IPO could change, the people said.
Separately, Figure’s digital asset arm—which won’t be part of the IPO—is seeking to raise $50 million, the people said. Cagney would stay on as CEO of that division and is also considering finding a separate CEO for the LendCo, they said.
Representatives for Figure, Goldman Sachs, JPMorgan Chase and Jefferies declined to comment.
Cagney started Figure in 2018 with the goal of building financial products with blockchain technology. The company laid off about 20% of its staff as it started interviewing banks for an IPO of the lending business, Bloomberg News reported in July. Figure’s valuation was $3.2 billion in a 2021 venture-backed funding round.
It joins other tech-related companies considering IPOs in 2024 as dealmakers hope for a rebound in equity offerings. Circle Internet Financial Ltd., issuer of the USDC stablecoin, is considering going public in early 2024, Bloomberg News reported this month.
(Adds details on other companies considering going public in final paragraph. An earlier version of this story was corrected to remove Morgan Stanley from the headline.)
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