Cuscal told the market on Monday it has pre-allocated about $128m of shares to a small group of investors ahead of its initial public offering later this month which looks set to proceed.
It said the shares were pre-allocated to a small group of long-only and domestic funds which have been engaged with management throughout the process.
The payments company is raising $336.8m for its IPO on November 25.
As reported by DataRoom on Friday, Cuscal, chaired by Elizabeth Proust, has lodged its IPO prospectus and has launched its management roadshow.
The IPO was priced two weeks ago at $2.50 per share, which gives it a $479m market value.
It equates to 7.7 times earnings before interest, tax, depreciation and amortisation for the 2025 financial year and a dividend yield of 3.7 per cent.
The debt-free Cuscal, which provides payment services to banks, is being pitched as a group with a strong track record of earnings growth and something of an annuity-style investment.
The appeal to investors has been that the price is seen as cheap at 13 times net profit when the overall market is trading at 19 times.
The business provides security, data analysis and payment infrastructure services, offering business-to-business services for institutional clients such as corporates, banks, credit unions, fintech companies and superannuation funds.
These include credit cards, mobile banking and payments apps, BPAY, ATM services, data management and fraud services.
Its owners include Bendigo and Adelaide Bank, MasterCard and other mutual banks.
Bell Potter, Ord Minnett and MST Financial are working as advisers on the transaction.
Cuscal is the biggest float of the year, but that is likely to be overshadowed by HMC Capital’s DigiCo REIT — to list by Christmas — following another announced purchase of data centre assets.
HMC is buying the iSeek centres for $400m, adding to its $1.94bn Global Switch Australia data centres purchase.
Sources close to the deal are confident it will get across the line with respect to investor support and is on track to make its debut next month.
It will raise about $1.6bn from investors.
The DigiCo REIT will have 13 data centre properties the group has purchased for about $3.9bn.
Next on the to-do list of the David Di Pilla-backed HMC Capital could also be to buy the Fujitsu Australia data centres which have been on offer.
Jarden deal-makers sharpen their focus on lifting share
This year expect more Australian corporations to reshape their portfolios and private equity to consider floats as an investment exit option, says Jarden Group.
Debt capital markets proceeds up
Debt capital markets proceeds for Australia increased more than 16 per cent in 2024 compared to the previous year as corporates became more confident that inflation was being reined in.