Better.com’s share price stumbles on Nasdaq debut
Better.com has made an underwhelming debut on the New York Stock Exchange (Nasdaq) after finally going public this week.
Better’s share price fell around 93% on Thursday
The New York-based digital mortgage lender went public through a SPAC merger with the blank check company Aurora Acquisition Corp., trading on the Nasdaq as Better Home & Finance Holding.
Shares were previously trading at more than $17 on Wednesday, but declined 93% to $1.15 by market close on Thursday.
Better’s journey to going public has been a long one. The lender had originally announced its plans for a SPAC merger back in May 2021 before delaying the move.
“When the deal was priced in 2021, rates were at record lows,” says Vishal Garg, CEO of Better, in a statement. “We believe that when interest rates normalize, our technology powered by Tinman will drive long-term growth and create shareholder value.”
“With $560 million in additional capital, we are one of the five most well-funded mortgage lenders in the industry,” Garg adds.
Better.com was founded by Garg in 2016, promoting fast access to loans for home buyers. The company enjoyed noted highs during the pandemic, riding valuations as high as $7.7 billion.
The subsequent increase in interest rates and the diminishing demand for mortgages have taken their toll on the fintech, while Garg was also subject to significant backlash in December 2021 after laying off 15% of the company’s workforce, around 900 employees, via a Zoom call.
Earlier this year, the company announced it was laying off more than 3,000 staff due to “headwinds affecting the residential real estate market”.
