Stripe discusses public listing for 2022 with bankers

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(Bloomberg) – Stripe Inc., the latest digital payments company valued at nearly $ 100 billion, is in preliminary talks with investment banks to go public as early as next year, according to people with knowledge of the matter.

The 11-year-old company plans to debut through a direct listing or an initial public offering, the people said, asking not to be identified because the information was private. His plans, including the timeline, could still change, the people said.

A representative for Stripe, headquartered in Dublin and San Francisco, declined to comment.

Stripe, founded by brothers John and Patrick Collison, is one of the most anticipated listings in years and one of the largest privately held companies to ever go public. Already, the Collisons each have a net worth of $ 11.4 billion, according to the Bloomberg Billionaires Index.

Stripe raised $ 600 million in March for a valuation of $ 95 billion. This makes it the most valuable American startup and one of the largest in the world alongside TikTok’s parent company ByteDance Ltd, according to data provider CB Insights.

In the months following this assessment, private transactions were considerably higher. Existing investors were able to sell shares at a price that sets the company at $ 152 billion, according to data provider PitchBook.

Direct registration

If it pursues a direct listing, it would be the latest in a growing list of companies to take the less conventional route developed by Spotify Technology SA in 2018. In a direct listing, investors in a company can usually start to sell their shares on the public market. without new shares being issued to raise capital for the company.

Reuters reported in July that the company had hired Cleary Gottlieb Steen & Hamilton LLP as legal counsel for its early stage listing preparations.

Stripe competes with Square Inc. and Paypal Holdings Inc. Its products are used by companies such as Amazon.com Inc., Salesforce.com Inc. and Lyft Inc.

Stripe investors include Allianz SE, Axa SA, Baillie Gifford, Fidelity Management & Research Co., Sequoia Capital and the National Treasury Management Agency of Ireland.

(Updates with secondary market valuation from sixth paragraph)

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