Debt Collector Jefferson Capital Targets Valuation Up To $1.1B In U.S. IPO

Jefferson Capital (JCAP), which acquires charged-off and insolvent consumer accounts, expects shares offered in its initial public offering to price at $15.00-$17.00 per share. At the top end of the range, the company would be valued at ~$1.10B, as it has 64.8M shares outstanding.

The company is offering 625,000 shares and selling shareholders are offering 9.375M shares. J.C. Flowers, the company’s majority shareholder, is offering 7.76M shares and entities affiliated with Canaccede are offering 1.61M shares, according to the company’s SEC filing. If the overallotment option is exercised in full, CEO David Burton will offer 424,296 shares.

If priced at the top end of the range, Jefferson Capital (JCAP) would get net proceeds of ~$10.6M. At the middle of the range, the company estimates net proceeds of $3.7M. It expects to use ~$3.7M to repay outstanding borrowings, if any, under its revolving credit facility and intends to use any remaining net proceeds for general corporate purposes.

J.C. Flowers, which currently owns 81.7% of Jefferson Capital’s (JCAP) shares, will reduce its stake to 67.5% if the full overallotment option is exercised.

Jefferson Capital (JCAP)l, which acquires troubled consumer accounts including credit card, auto, student, and installment loans, describes its core competency as “the effective management of the collections function in strict compliance with applicable laws and regulations.”

The company’s Q 2025 adjusted net income jumped to $62.9M from $34.2M in last year’s Q1. For FY2024, its adjusted net income increased 41% to $153.6M. Q1 total revenue of $154.9M more than doubled from $99.9M in the year-ago quarter, due to increased purchases during the period. Q1 cash collections of $260.9M surged from $127.2M in last year’s Q1, the company said.

The market for IPOs has revived some in the past month, especially for crypto and fintech names, with successful debuts by  Circle Internet (CRCL) and Chime Financial (CHYM). Slide Insurance (SLDE) is expected to price on June 17, and start trading on June 18.