Swedish payments firm Trustly said on Monday it intends to list its shares on the Nasdaq Stockholm exchange in a deal that analysts said could see the company valued at up to €9 billion.
The Stockholm IPO may be followed by a second listing in New York.
The initial stock float will target 8 billion kronor ($934 million).
“The offering is expected to consist of both new shares issued by Trustly and of existing shares in the company offered by the selling shareholder …” ” said Trustly.
“Trustly’s principal shareholder, Cidron Maas S.à r.l. (the ‘selling shareholder’), which is indirectly controlled by Nordic Capital Fund IX, together with Trustly’s board of directors and executive management team, believe that a listing of the company’s shares on Nasdaq Stockholm represents an important stage in the development of the company …
“It is expected that a listing of the company’s shares on Nasdaq Stockholm will contribute to an increased awareness of Digital Account-to-Account (A2A) payments and Trustly’s global leadership position within this market.
“This is expected to strengthen Trustly’s profile and positioning with customers, partners and investors, as well as further increase the company’s ability to attract and retain management and employees.
“It will also provide Trustly with access to the capital market supported by a broad and long-term shareholder base.
“In addition, the offering allows the existing shareholders to sell a portion of their current shareholding and welcome new shareholders to be part of the next chapter in Trustly’s development.”
Trustly CEO Oscar Berglund said: “Thirteen years ago, we started building an alternative payment solution enabling consumers to pay directly from their online bank accounts, bypassing intermediaries to the benefit of both merchants and consumers.
“Our solution comprises a payment network built on account-to-account rather than card rails, a consumer-facing payment method and the full range of functionalities that merchants require to accept digital payments in an effective and efficient way.
“We have expanded our network ever since, now reaching 525 million consumers, and Trustly is today a global leader in digital account-to-account payments, powering the shift to a cardless society.
“Trustly has experienced strong revenue growth during the last couple of years, and we have a clear strategy to execute on going forward.”
Trustly chairman Johan Tjärnberg said: “The payments sector is undergoing a once-in-a-generation transformation with a modernization towards real-time payments.
“Many stakeholders are pushing for the digital account-to-account payment method; regulatory mandates are set to foster competition and innovation, merchants want global reach, increased conversion and reduced costs, and consumers increasingly prefer paying directly from their bank account in a seamless and secure way.
“Trustly is uniquely positioned in this transformation as a global leader with unmatched scale and reach.
“To continue this remarkable growth story, the board of directors has decided to announce Trustly’s intention to list on Nasdaq Stockholm.
“A listing will further build our profile and brand awareness while offering shareholders and our team the opportunity to be part of the continued growth.”
Fredrik Näslund, partner at Nordic Capital Advisors and member of the board of Trustly, said: “During Nordic Capital’s ownership, Trustly has made significant investments in growth, technology and people and executed a carefully crafted growth strategy, both organically and through acquisitions.
“The results are impressive, Trustly has a scalable platform in place with significant operating leverage and has successfully developed from a European company to a global leader with a strong foothold on the important US market.
“Trustly offers a more sustainable way to pay – for society, consumers and merchants.
“Nordic Capital believes in the future of Trustly and will remain a significant shareholder.”