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Trustly’s parent company, Nordic Capital, is working with Goldman Sachs, JPMorgan Chase, and Carnegie on the IPO. Besides, it is reportedly in the process of hiring more banks to launch the IPO in late April or early May.
Sweden’s payments company Trustly is reportedly planning to conduct an Initial Public Offering (IPO) in the second quarter of 2021. According to those familiar with the matter, the IPO could value the company at €9 billion (about $11 billion). It will probably take place in Stockholm.
According to Reuters, Trustly’s parent company, Nordic Capital, is working with Goldman Sachs (NYSE: GS), JPMorgan Chase (NYSE: JPM), and Carnegie on the IPO. Besides, it is reportedly in the process of hiring more banks to launch the IPO in late April or early May. Nordic Capital and the banks declined to comment on the news.
Trustly is a licensed payment company authorized and supervised by the Swedish Financial Supervisory Authority. Founded in 2008 and backed by Nordic Capital that owns a 70% stake in Trustly, it processes more than 9 million payments monthly. Trustly serves more than 6,000 merchants including PayPal, Alibaba, Facebook, eBay, AT&T, Unicef, Dell, Lyft, TransferWise, DraftKings, and eToro.
The company has nine offices in Europe and the Americas. In August 2020, Trustly has also expanded into Canada and Australia, marking its first step into the Asia-Pacific region.
Trustly’s revenues totaled around 130 million euros in 2019. For 2020, they are expected to be 200 million euros on a “double digit” core earnings.
In June 2020, Trustly ran a financing round that included BlackRock, Investment Corporation of Dubai, Aberdeen Standard Investments, Neuberger Berman, and Retirement System Investment Commission. The investment round brought the company’s valuation at close $2 billion.
Trustly IPO to Take Place amid Digital Transactions Boom
As a result of the coronavirus lockdowns, the appeal of fintech businesses has rapidly increased. More consumers engage with digital commerce platforms and make online payments to avoid physical contact and the further spread of the coronavirus. Therefore, digital transactions soared.
Notably, Trustly IPO is one of several technology listings to take place this year in Europe. Among other companies to prepare for public debut is global money transfer firm Transferwise. The company is reportedly getting ready for a potential stock market listing in Britain. Goldman Sachs, Morgan Stanley and Barclays will assist in the IPO. The initiative could bring the value of TransferWise at a lot higher than the $5 billion.
Now deals with Many Fintechs are simultaneously considering an IPO and also a deal with a special purpose acquisition (SPAC) company, which secures funds in an IPO and then acquires a private company in order to give it a listing. SPAC IPOs have gained traction in Canada, UK, Netherlands, New Zealand, South Korea to name a few countries. By August 2020, more than 50 SPACs have been formed in the US. The latest notable SPAC we reported about was SoftBank SPAC IPO.