Network International soars after IPO at ?2.2bn valuation
By Duncan Ferris
Date: Wednesday 10 Apr 2019
(Sharecast News) - Shares of UAE-based payments group Network International stormed higher after it floated with a £2.18bn valuation on Wednesday, in what was the largest initial public offering on the London Stock Exchange so far this year.
Existing shareholders General Atlantic, Emirates NBD and Warburg Pincus sold half their stock at a price of 435p per share to buyers including US card network Mastercard, which picked up a 9.99% slice of the company's equity via a secondary sale that was conducted simultaneously to the float.
Simon Haslam, chief executive at Network International, said: "I am delighted that Network International will join the London Stock Exchange today through a Premium Listing on the Main Market, marking an exciting new stage in our journey. Over the past few weeks we have seen significant support from the investment community and I would like to take this opportunity to welcome our new shareholders, including Mastercard, onboard."
The Middle Eastern company was not raising any money itself with the institutional offer from existing shareholders comprising 200m shares.
Assuming that the Stabilising Manager, Citigroup Global Markets, did not exercise its over-allotment option, then the company's free float would be equal to 40% of the company's issued shares at the time of admission.
The investment from Mastercard, the cornerstone investor, represented an additional 50.0m shares and was subject to a 24-month lock-up and 36-month standstill, during which time further share purchases would need the sign-off from the newly listed company's board.
Network International, which was founded as a division of Emirates Bank in 1994 before splitting into a separate business, operates in over 50 countries across the Middle East and Africa and allows businesses to process digital payments in shops and through computers and smartphones.
"I am confident that Network International is extremely well positioned for future growth with unique scale in the world's most underpenetrated payments markets. The Middle East and Africa are at an early stage in the shift from cash to digital payments and our new listing on the London Stock Exchange will enable all new shareholders to benefit from this structural growth opportunity," said Haslam.
Network International's shares were up 22% at 532.20p at 1000 BST.
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