Adds analyst comments in paragraphs 5 and 6, CEO comments in paragraphs 10 and 11, background in 4, 7-9, 12 and 13

By Prakhar Srivastava

Dec 12 (Reuters) - Wealthfront's WLTH.O shares opened flat in their Nasdaq debut on Friday, valuing the automated digital wealth management company at $2.63 billion on a fully diluted basis, as investors remained selective in a crowded fintech listing.

The Palo Alto, California-based company's stock opened at $14.

Wealthfront and some of its existing shareholders raised $484.6 million in its initial public offering on Thursday after selling 34.6 million shares at the top end of its $12 to $14 marketed range.

The debut contrasts with strong first-day performance from other fintech listings this year, including digital bank Chime CHYM.O and Sweden's fintech Klarna KLAR.N.

"While several high-profile deals saw strong first-day returns, the broader aftermarket performance for large fintech deals was mixed," said Lukas Muehlbauer, IPOX research analyst.

"This shows that investors are still selective."

After a sharp post-pandemic slowdown, fintech issuance has started to rebound.

So far in 2025, about 10 fintech IPOs have raised more than $6.5 billion in the Americas, up from $148 million in 2022, according to Dealogic data.

Founded in 2008, Wealthfront provides automated tools and software for cash accounts, low-cost loans and investing in ETFs and bonds, as well as planning tools tailored to millennial and Gen Z clients.

CEO David Fortunato told Reuters in an interview that the median age of clients who had joined the platform in the last year was around 23 or 24.

"We appeal to those folks, and our goal is to continue building products that help them grow their wealth more quickly with tax-efficient strategies, global diversification and low-fee investing," said Fortunato.

The company, an early mover in using automation to build low-cost investment portfolios, has incorporated elements of artificial intelligence into its financial planning software.

The debut comes as companies rush to squeeze in deals before the year-end holidays.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Sahal Muhammed and Alan Barona)

((Prakhar.srivastava2@thomsonreuters.com))