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Elevate Credit shares rise after dropping expected IPO pricing

Elevate Credit Inc. shares rose soon after the company began trading for the first time April 6.

The spike came just hours after the company slashed the pricing for its IPO to $6.50 per share, down from the expected range of $12.00 to $14.00 per share. Elevate Credit shares opened trading at $7.00.

The company also increased the number of common shares offered in its IPO to 12.4 million from 7.7 million. Underwriters were granted an option to buy up to an additional 1,860,000 shares. The offering is expected to close April 11, with net proceeds projected to be about $69 million, or $81 million, if the underwriters exercise their option to buy up additional shares, after deducting other expected costs and commissions.

The company previously said it plans to use about $14.9 million of the net proceeds to pay back part of an outstanding amount under its convertible term notes and about $53.0 million to repay part of the outstanding amount under its financing agreement. The remainder of the proceeds will be used for general corporate purposes.

As of 11:47 a.m. ET, shares of Elevate Credit were up 14.29% to $8.00.