Elevate Credit, a Texas-based online lender focused on subprime borrowers, has hit another bump in the road on its path to an IPO. Last year, the company delayed plans to go public when the public markets unexpectedly tanked. With conditions looking more favorable, post-Snap, Elevate revived its IPO plans last week. The company filed to sell 7.7 million shares at $12-14 apiece, in the hopes of raising as much as $124 million.
So much for that idea. This morning Elevate revised its share price—dropping it by half, to $6.50, while raising the number of shares on offer to 12.4 million. Investors may have been spooked by the company’s net charge-offs (i.e., loans the company is unlikely to recover), which rose to 52% of revenue in 2016, up from 49% the year prior. Elevate plans to list on the New York Stock Exchange under the ticker ELVT.