Nets , issuer of Denmark’s most used debit card, was valued at 30 billion Danish crowns ($4.5 billion) in its listing on Friday, nearly double what Advent International, Bain Capital and pension fund ATP paid for it two years ago.
Demand for shares in Scandinavia’s largest payments processor exceeded expectations and the initial public offering (IPO) was four days earlier than planned.Nets’ listing is one of just a handful of IPOs in the European tech sector this year after a slump and other firms are watching to see if prices hold up enough to justify pushing ahead with their own IPOs.
Shares in Nets opened by as much as 3.3 percent above the offer price of 150 crowns, but had fallen to 148.90 by 0949 GMT.Nets said 36.7 million new shares will be issued, raising gross proceeds of 5.5 billion Danish crowns, while existing shareholders, including private equity firms Advent International and Bain Capital, sold 68.3 million shares.Nets is seen by some investors as more of a long-term investment than a fast IPO return case, Jyske Bank analyst Michael Jorgensen said, with its “story” one of Nordic economic stability and a technological width not seen in its peers.
He expects Nets to grow revenue organically by about 6 percent this year and by 5-6 percent in the following three years. That compares against an industry that is expected to grow by 4 percent per year until 2020, he said.Approximately 42,000 new shareholders have been allocated shares and Nets said an over-allotment option of an additional 15.75 existing shares could bring the total offering size to as much as 18.11 billion Danish crowns.
The company’s free float will be between 52 percent and 60 percent, depending on the over-allotment size.