Payments processor Worldpay became the biggest flotation in the City this year when it listed on the London Stock Exchange today at a value of £4.8 billion.
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Shares jumped 6pc in conditional trading, in which City institutions trade the stock ahead of open trading, which begins on October 16. One source familiar with the matter said demand outstripped the number of shares on sale by six to seven times.
Including debt, the initial public offering (IPO) values Worldpay at £6.3 billion.
Private equity owners Bain Capital and Advent worldwide had looking at an offer of between 225p to 260p, though this was narrowed on Friday to between 235p to 250p. The business provides platforms to allow merchants to accept payments by cards and other methods.
A bookrunner for the deal said earlier this month that Worldpay was seeking a valuation of between £4.5bn and £5.2bn. It employs about 4,500 staff, mostly in Britain and the U.S., which are its two biggest markets.
London Stock Exchange chief executive Xavier Rolet said: “The fact Worldpay has chosen to raise capital here confirms London’s position as the leading global financial centre able to attract the world’s most important new companies and highlights the exceptional investor appetite for dynamic companies”. Worldpay’s private equity owners will hold around 49 percent of the company’s shares.
“Today’s announcement is a significant milestone for Worldpay”.
Bank of America Corp., Goldman Sachs Group Inc. and Morgan Stanley advised on the IPO, along with Credit Suisse Group AG, Barclays Plc and UBS AG. People close to the United Kingdom company told the FT that the payments processor had rejected the French group’s bid because of the risk it would struggle to raise financing in equity markets.
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Worldpay made underlying earnings before interest, tax, depreciation and amortization of 375 million pounds a year ago, up from 346 million in 2013.
