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Hawk’s Nest

Call Buyer in Exciting Recent Fintech IPO

by | May 22, 2022

Forge Global (FRGE) a small cap that saw an unusual trade on 5/20 as 1000 August $17.50 calls bought to open at-the-month up to $3.20. The 2022 IPO has seen shares surge more than 70% despite the tough Software environment and shares last week pulled back to retest its recent range breakout. Forge is a leading provider of marketplace infrastructure, data services, and technology solutions for private market participants. Its global online trading platform, Forge Markets, enables accredited institutional and individual investors to purchase private company shares from current and former employees, as well as existing investors. Its accessible and technology-enabled market makes it easy for employees to sell their private shares, for companies to reward shareholders with pre-IPO liquidity and for individual and institutional investors to contribute to and potentially benefit from private unicorn growth. Forge acquired SharesPost in November of 2020. Forge had approximately $3.2 billion in transaction volume in the twelve months ending December 31, 2021. Forge has yet to see any Analyst coverage nor are forward estimates currently available. Forge sees a lot of potential in data markets with it seen accounting for 15-20% of long-term revenues while current main revenue streams are transaction-based with a take rate and recurring fee-based revenues for Forge Trust. FRGE internal estimates see 20-25% revenue growth with FY23 revenues seen around $185M with a current EV of $916M.