Worldpay valued at £4.8 billion in London's biggest listing this year

IPO for the payments processor is largest of this year on the London exchange

PUBLISHED : Tuesday, 13 October, 2015, 9:11pm
UPDATED : Tuesday, 13 October, 2015, 9:11pm

British payments processor Worldpay listed on the London Stock Exchange on Tuesday in an initial public offering valuing the company at £4.8 billion (HK$56.6 billion), the biggest flotation in London this year.

Shares in Worldpay were trading at 255 pence in early trade, above the 240 pence offer price. One source said demand outstripped the number of shares on sale by six to seven times.

Worldpay's private-equity owners Advent International and Bain Capital rejected an offer of up to £6.6 billion, including debt, earlier this year from French rival Ingenico, a source said at that time.

Including debt, the initial public offering values Worldpay at £6.3 billion.

Advent International and Bain bought Worldpay from Royal Bank of Scotland in 2010 for about £2 billion. The business provides platforms to allow merchants to accept payments by cards and other methods.

Worldpay processes 31 million mobile, online and in-store transactions every day and has about 4,500 staff, mostly in Britain and the United States.

"We have already invested over £1 billion in our technology, people and capabilities, helping us to become an advanced and sophisticated technology-led organisation with great potential," chief executive Philip Jansen said yesterday.

Worldpay said the IPO would raise £2.16 billion, with the company receiving £948 million. Worldpay's private-equity owners will hold onto about 49 per cent of the company's shares.

London has seen fewer firms go public this year, with 93 listings raising about £5.3 billion by the end of September, roughly half the £11 billion raised from 136 listings in the same period last year, according to stock-exchange data.

British insurer Hastings' shares fell below the IPO price of 170 pence on the London stock exchange on Monday.

Worldpay made underlying earnings before interest, tax, depreciation and amortisation of £375 million last year, up from £346 million in 2013.