Investors Chronicle (London) - The Alternative Investment Market is set for its biggest ever float at the end of the month when online money transfer service company NETeller goes public. NETeller is being brought to the market by Canaccord Capital, which is now conducting the preliminary roadshows. Terms of the flotation have not yet been agreed, but it is likely that NETeller will be valued at around £200m, with around £50m new capital being raised by the flotation.
The road show will end on 18 or 19 March, with letters of intent being sent out on 20 March. The books will be closed a couple of days later and it is anticipated that dealings will start on 31 March. Early indications are that there is a great deal of institutional interest in NETeller and that the issue will go well, adding to the string of recent technology success stories for Aim new issues.
The record, though brief, is impressive and underpins the high hopes for the issue. Three years old now, Isle of Man-based NETeller, has around 200 employees and was set up by its chairman, Stephen Lawrence. He’s a Canadian entrepreneur who began in property development in Alberta and moved into e-commerce. The company’s chief executive is Gordon Herman, who was president of the GE Capital Leasing arm of General Electric, and who also has interests in e-commerce.
In the year to end-December NETeller’s turnover soared from $8.2m to $36.0m and, with margins edging past 50 per cent, profits came out around $19m. This year it is expected that NETeller’s turnover will hit $71m and profits will be $37m. With growth numbers like these, the issue is bound to attract considerable interest.
IC view:
With no indicative pricing, it’s hard to assess the value of the shares. But if there is heavy institutional interest, it’s a fair bet that they’ll be volatile post-listing. Worth watching.
The road show will end on 18 or 19 March, with letters of intent being sent out on 20 March. The books will be closed a couple of days later and it is anticipated that dealings will start on 31 March. Early indications are that there is a great deal of institutional interest in NETeller and that the issue will go well, adding to the string of recent technology success stories for Aim new issues.
The record, though brief, is impressive and underpins the high hopes for the issue. Three years old now, Isle of Man-based NETeller, has around 200 employees and was set up by its chairman, Stephen Lawrence. He’s a Canadian entrepreneur who began in property development in Alberta and moved into e-commerce. The company’s chief executive is Gordon Herman, who was president of the GE Capital Leasing arm of General Electric, and who also has interests in e-commerce.
In the year to end-December NETeller’s turnover soared from $8.2m to $36.0m and, with margins edging past 50 per cent, profits came out around $19m. This year it is expected that NETeller’s turnover will hit $71m and profits will be $37m. With growth numbers like these, the issue is bound to attract considerable interest.
IC view:
With no indicative pricing, it’s hard to assess the value of the shares. But if there is heavy institutional interest, it’s a fair bet that they’ll be volatile post-listing. Worth watching.
