Buy-now-pay-later company Sezzle Inc.'s first day trading on the Nasdaq stock exchange was anything but normal.
Minneapolis-based Sezzle stock shoots up 258% in first day on Nasdaq, trading halted
As the pay-now-pay-later company continues growing, it will still trade on the Australian stock exchange, as well as Nasdaq.
August 17, 2023 at 10:48PM
In the first two hours of trading, Sezzle's stock shot up to $81.08 a share, an increase of 258%. The surge caused Nasdaq to halt trading of the Minneapolis-based company's shares just before 11 a.m.
Information listed on the nasdaqtrader.com website indicated that trading was halted because Nasdaq requested additional information from the company. But the online source did not indicate the nature of the information sought.
Sezzle and Nasdaq officials met after the stock market's close to resolve the matter.
"It's a liquidity issue," said Erin Foran, a spokeswoman for Sezzle. The company did not provide further details Thursday afternoon.
The company, trading under the "SEZL" ticker symbol, did not issue any new shares in connection with the listing. It also continued to trade on the Australian Securities Exchange.
By adding Nasdaq, Sezzle shares will be available to more domestic shareholders, said Sezzle CEO Charlie Youakim, who with a contingent rang the opening bell for Nasdaq on Thursday to celebrate the listing.
American investors previously had trouble buying the stock, he said.
Sezzle currently is on the upswing. Last year, the company was posting net losses. But its second quarter results released last week showed a profit of $1.1 million. Revenue was up 19.4%.
"Everything in business is supply and demand, and we think there's demand here," Youakim said.
A U.S. stock listing has been a long-term goal for Youakim. Sezzle filed a confidential registration in 2021 for an initial public offering in the U.S. Sezzle also pitched getting listed on the Nasdaq market in March.
Last week, the company said the application was progressing.
The company also moved its headquarters last month to The Dayton's Project in downtown Minneapolis.
Sezzle, founded in 2016, now has 280 employees.
Last month, the company touted its growth in Canada where it now has more than 500,000 customers.
The party supply company told employees on Friday that it’s going out of business.
