Five trading days have passed since Pagaya Technologies (Nasdaq: PGY) was listed on Nasdaq and the Israeli fintech company has already lost two thirds of the $8.5 billion valuation, at which it completed its SPAC merger with US company EJF Acquisition Corp. On Wednesday, Pagaya fell 19% to $4.31, giving a market cap of $2.8 billion. The company's share began trading last week at $7.
Pagaya was founded in 2016 by CEO Gal Krubiner, CRO Yahav Yulzari, and CTO Avital Pardo. The company provides P2P credit and loans through a platform based on machine learning technology. Last week, Pagaya raised $350 million in the PIPE (private investment public equity) investment, which accompanied the merger, while most of the investors in EJF preferred to forego the merger and receive their money back.
The slump in Pagaya's share price since it began trading on Nasdaq reflects the sharp falls in technology companies in general and those that listed through SPAC mergers in particular, all of which have recorded negative returns.
When Krubiner was asked by "Globes" last week about his expectations for the share's performance, he said, We don't deal with that. Unfortunately or fortunately we don't control the share price. It's important to understand that the issue is the long term - what will be the performance in five-years, for example."
Published by Globes, Israel business news - en.globes.co.il - on June 30, 2022.
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