Report: Apex Plans to Go Public Following Scrapped SPAC

Apex FinTech has reportedly filed confidentially for an initial public offering (IPO).

The Dallas-based clearing company had planned to go public through a special purpose acquisition company (SPAC) merger in 2021, but that $4.7 billion deal fell through.

The planned IPO was the subject of a recent Axios report, which notes that there hasn’t been a major American FinTech IPO since 2021, a year that saw 41 companies raise $22.3 billion.

The Axios report notes that Apex could end up being a bellwether for IPOs following a year that saw a number of lukewarm public debuts.

“We were going to come out as part of the SPAC at $4.7 billion pre-money. That’s pretty frothy,” Apex CEO Bill Capuzzi told Axios earlier this year.

“I think the valuation is less than what it was back then, despite the fact that their numbers are much better — we’re profitable. But I think we’re getting back to a normal, multiple range, and today it puts us in range with the SaaS-type companies.”

As PYMNTS wrote earlier this month, the IPO market has seen a sharp slowdown over the past two years, mainly due to rising interest rates, declining valuations, and poor performance of recently-listed companies’ shares.

This fall saw a number of companies — chipmaker Arm, grocery delivery platform Instacart, sandal seller Birkenstock and marketing automation firm Klaviyo — go public with a lot of fanfare, only to see their shares dip.

In 2023, companies have raised only $20 billion in U.S. IPOs, a significant decline of nearly 90% compared to two years ago. In spite of this, a recent rally in stock markets and expectations of interest rate cuts by the Federal Reserve have jump-started confidence in the IPO market.

Next year could bring a number of high-profile listings, such as Panera Breads, a chain of fast-casual eateries. And fast-fashion group Shein has also filed preliminary confidential IPO documents, potentially setting up one of the biggest U.S. listings of the past decade.

“Earlier this year, Shein, valued at $66 billion, swiftly rose to become one of the world’s biggest fashion brands, along with H&M, ASOS and Uniqlo,” PYMNTS wrote. “Shein is expected to target an even higher valuation as it gears up for its IPO.”

In a potential stock sale in the U.S., the retailer’s valuation could reach $90 billion, making it three times as big as rival H&M, which has a market capitalization of roughly $27 billion.