Nets Holding A/S, a Nordic payments firm owned by equity funds Advent International Corporation and Bain Capital Private Equity, as well as Danish pension fund ATP, said it expects an initial public offering to value the company as high as $4.8 billion.
Nets, which published its circular offering on Tuesday, said it expects to get 130-160 kroner per share in connection with its planned IPO. That would give the company an implied market capitalization of 26-32 billion kroner ($4.8 billion), according to the statement. It expects a free float of 40-60 percent. The offer period runs until Sept. 26.
The current consortium of owners agreed to buy Nets for 17 billion kroner from a group of Nordic banks, including Danske Bank A/S, Nordea Bank AB, DNB ASA and Denmark’s central bank, in March 2014. The consortium plans to issue 34 to 42 million new shares to generate gross proceeds of around 5.5 billion kroner, and to sell as much as 71 million existing shares. That excludes an over-allotment option of 16 million shares.
Nets said it will use the proceeds to repay debt. The company had a first-half revenue of 3.6 billion kroner, and an adjusted net profit of 603 million kroner.
Competition in the payments market is heating up in the Nordics. Danske Bank has said it’s pairing up with VeriFone Systems Inc. to offer its MobilePay service at VeriFone terminals throughout the region. The U.S.-based payments-technology company supplies more than 60 percent of the region’s terminals, making it the largest in the Nordics, according to Danske.