Payments infrastructure company Cuscal has priced its initial public offering to give the company a $479.1m market value when it lists on the Australian Securities Exchange.
The shares will be sold at $2.50 each as the group raises up to $336.8m.
It comes after DataRoom revealed Cuscal was launching a cornerstone process for its float to find key investors to commit to the deal upfront.
The price equates to 7.7 times its earnings before interest, tax, depreciation and amortisation for the 2025 financial year and a dividend yield of 3.7 per cent.
The company is promoting itself as debt free, with only $40m of the $336.8m raise a primary raising.
The group has just finished meeting with fund managers in Asia to familiarise them with the company after earlier talking to Australian investors.
The IPO is being pitched as a group with a strong track record of earnings growth and as somewhat of an annuity-style investment.
Now making $30m of annual earnings, it has grown over time and there’s an opportunity to grow market share while keeping costs fixed, providing the possibility for higher margins.
The business provides security and data analysis and is a payments infrastructure services provider, offering business-to-business services for institutional clients such as corporates, banks, credit unions, fintech groups, and superannuation funds.
These include credit cards, mobile banking and payments apps, BPAY, ATM services, data management and fraud services.
Cuscal planned to list last year but pulled the pin in November during challenging market conditions.
Its initial plan was to have a $514m market value, and the last selldown size discussed was $292m.
Its owners include Bendigo and Adelaide Bank, MasterCard and other mutual banks, and it had hired Bank of America, Ord Minnett and Bell Potter for the initial public offering last year.
The price equated to 9.4 times EBITDA for the 2024 year.
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