Montreal-based payment processor Nuvei reveals plans to go public

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Payment processing company Nuvei Corp. filed for listing on the Toronto Stock Exchange, benefiting from the surge in investor interest in digital tech stocks as the pandemic forced more online trading.

The Montreal-based company filed a prospectus on Tuesday, although details on the size or price of the initial public offering were withheld. Private funding in December valued the company at $ 2.65 billion, suggesting that Nuvei’s upcoming listing will be the largest Canadian tech IPO yet this year.

The transaction is led by Goldman Sachs and the Bank of Montreal, with participation from other major Canadian banks and several major US investment banks.

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The company, which provides payment processing technology for online and in-store payments, will begin trading in a hot market for tech stocks. Toronto-based legal software company Dye & Durham Ltd. went public in July, and its share price has climbed more than 250 percent since its IPO. The stock price of Montreal-based Lightspeed POS Inc. has nearly tripled since its IPO last year.

The upcoming deal should grab the attention of investors hungry for local tech names, as many of Canada’s most promising companies have chosen to stay private in recent years, supported by an influx of private capital.

Founded by CEO Philip Fayer in 2003 as Pivotal Payments, Nuvei has grown steadily to become one of the largest privately held fintech companies in Canada. The Caisse de dépôt et placement du Québec and the Montreal private equity firm Novacap are major supporters. Last December, the couple invested an additional $ 358 million in the company, in what was believed to be the largest private direct investment in a Canadian tech company.

Nuvei has 765 employees, including 194 in Montreal. According to the prospectus, around 50,000 merchants around the world use its payment systems in a wide range of industries, including online retail, online gambling, and financial services.

The company generated revenue of $ 245.8 million in fiscal 2019 and a net loss of $ 69.5 million.

“We intend to grow alongside our existing merchants and expect to benefit from sales growth and strong retention in some high growth end markets including regulated online gaming / sports betting. , regulated. [foreign-exchange] trading, social games and online markets, ”the company said in its prospectus.

Along with its organic growth, the company seeks to develop through acquisitions. Last summer, it nearly doubled in size with a US $ 872.5 million acquisition of the London Stock Exchange-listed payment service provider SafeCharge International Group Ltd. It is also in the process of purchasing a Dutch company called Smart2Pay for around 221.5 million euros (345- million).

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Like many other digital tech companies, Nuvei appears to have benefited from the COVID-19 physical distancing measures that have encouraged people to spend more time and money online.

“In June 2020, our total volume was more than 28% higher than the same period in 2019.… As of July 2020, the year-over-year growth reached almost 40%,” said the company in the prospectus.

“We believe the COVID-19 crisis will act as a catalyst to further accelerate mobile and e-commerce transactions as consumers adjust to a ‘new normal’ (including the decline in the use of cash) and that merchants will switch to contactless and mobile payments. to ensure business continuity, ”the company said.

The company said it intended to use the proceeds of the IPO to pay off debt. The IPO road show should take place virtually.

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