Italian payments firm Nexi said early Friday that its initial public offering has pegged the market capitalization of the group at 5.70 billion euros ($6.44 billion), raising money at a time when rival newcomers are increasingly harnessing alternative payment method technologies.
In what is billed as one of the largest private placements to institutional investors in Europe this year, the offer from Nexi, which runs electronic payments for credit card operator CartaSi, received “strong interest” from more than 340 investors from around the world, according to a statement.
The offer price was set at 9.00 euros per share, which compares with an indicative range of 8.50 to 10.35 euros per share set out in a statement on March 26. It translates into an enterprise value of 7.3 billion euros and an enterprise value to earnings before interest, tax, depreciation, and amortization multiple of 17.2 times.
The company said the free float of Nexi shares will be 35.6% of its share capital, which could increase to up to 40.9% if a greenshoe option — over-allotment — is exercised, with total proceeds of roughly 2.01 billion euros net of any exercise of the option. In absolute terms, the offering comprises about 223.4 million shares.
The net proceeds, together with funds from a new loan agreement following the completion of the offer, will be used by the company to reduce the group’s indebtedness, including a partial repayment of its bonds.
Shares of Nexi will commence trading on Italy’s Mercato Telematico Azionario from April 16.