Back in February, PYMNTS reported speculation around plans for an IPO for Nets, Scandinavia’s biggest payments firm. Now, the business has announced that plans are in place to go public. Nets has applied for an IPO in a partial share sale, which analysts predict will yield proceeds of 5.5 billion kroner (about $824 million). Those to benefit from the offering include Advent International Corporation, Bain Capital Private Equity and ATP Group. Nets plans to list on the Nasdaq Copenhagen exchange.
Nets hasn’t released how much it plans to sell, but representatives from Nets told Bloomberg Markets the transition aims to “drive down debt and build a strong financial foundation under the company.” Debt reduction seems to be the driving reasoning and force.
While the exact date isn’t set, the company said early October is the target. The offering comes just two years after its purchase by Bain Capital and Advent International. Nets CEO Bo Nilsson said this plan is “the next step in the development of the Nets group following a period of rapid growth and considerable investment, during which the business has been transformed.” He said that these changes, along with the Nets business model and employee efforts, will make the company comfortably situated for long-term growth and appealing to investors.
About 2,400 people are employed by Nets throughout six Nordic countries. At the consumer level, more than 7.3 billion card transactions were made through the business, involving more than 300,000 merchants and 240 banks. Nets also transacts with more than 240,000 corporate customers.
Over the past two-and-a-half years, Nets has invested more than 3.9 billion kroner ($587 million) explicitly to streamline IT platforms and acquisitions. First-half revenues posted at 3.6 billion kroner ($542 million) and an adjusted net profit of 603 million kroner ($91 million).
The payments market in the Nordic countries is gaining popularity. This week, Danske Bank announced its new MobilePay option through its partnership with Verifone, which holds the largest share of payment terminals in the region.