Worldpay IPO Nets More than $3 Billion, Square Up Next
Oct. 15, 2015
After a summer in which it was wooed by several potential buyers including Ingenico , Wirecard and several private equity firms, Worldpay on Tuesday went public on the London Stock Exchange raising nearly $3.1 billion for the company and its private equity owners, Advent and Bain. After its first day of trading, Worldpay shares rose from their initial price of 240p ($3.70) to 265p ($4.08), increasing its market capitalization from £4.8 billion ($7.4 billion) to £5.3 billion ($8.2 billion). It is the largest IPO in the U.K. this year and the largest fintech IPO in the country ever. The e-commerce processing giant could use the proceeds to move away from legacy systems enabling it to offer more innovative solutions to its merchants, according to U.K.-based payments consultant Neira Jones.
“WorldPay currently handles around 40 percent of e-commerce transactions in Europe,” Jones told CardNotPresent.com. “The fact that its systems are predicted to rely on RBS’s infrastructure until at least 2017 means that a new injection of cash might accelerate the transition to a more modern infrastructure and perhaps a rationalization of its portfolio, with a view toward boosting digital innovation for this global payments leader with an already strong alternative payments portfolio.”
Separately, mPOS pioneer Square yesterday unveiled plans for its own long-awaited IPO. According to its S-1 filing with the Securities and Exchange Commission, the company will trade on the New York Stock Exchange under the symbol SQ. In July, the company reportedly filed secretly for the IPO under federal legislation called the Jumpstart Our Business Startups Act that allows companies with less than $1 billion to do so confidentially.
Square was a trailblazer in enabling micromerchants to accept credit cards using a smartphone, and later offered a digital wallet, but pivoted recently toward small-business lending and P2P payments.