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Avaloq appointing banks for 2020 IPO: Reuters
Posted on Friday, 22 November 2019 09:54
Switzerland-based financial technology company Avaloq is in the process of hiring investment banks to work on its planned initial public offering (IPO) scheduled to take place next year, people with information on the matter told Reuters.
These insiders cautioned that Warburg Pincus, which owns 45.0 per cent of the online lender, is working with Goldman Sachs and Barclays on the planned flotation.
A share sale is likely to be kicked off in the first quarter of 2020, according to the sources.
The possibility of either a disposal or an IPO has been rumoured since June when chief executive Juerg Henzinger told Reuters he is considering options for Avaloq.
At the time he did not comment on why he was exploring alternatives; however, he did say a sale or stock market listing is likely in the next two to four years.
Avaloq claims to be a leader in core banking software, digital banking and online wealth management services.
It serves more than 150 lenders and wealth managers with combined assets of USD 4,000 billion, including HSBC, Barclays, Deutsche Bank, Société Générale and Raiffeisen.
Avaloq posted earnings before interest, taxes, depreciation and amortisation of CHF 38.00 million (USD 38.32 million), on revenue of CHF 288.00 million in the six months to 30th June 2019.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been eight Swiss targets to announced IPOs since the start of 2019.
In the largest of these, railway vehicle manufacturer Stadler Rail raised CHF 1.33 billion on the SIX Swiss Exchange in April.
SoftwareONE Holding, an information technology infrastructure analysis and consultancy firm, received proceeds of CHF 693.89 million from its stock market debut last month, in the second-biggest deal.
Other companies to announce listing this year include Medacta Group, Ultima Capital and WFA Online.
© Zephus Ltd