Fund managers will spend the week digesting analyst research on Tyro Payments this week in what is expected to be one of the last successful listing of this year.
As reported by DataRoom online on Thursday, Morgan Stanley analysts have valued Tyro Payments at between $1.5bn and about $2bn ahead of its initial public offering and JPMorgan analysts have placed a value of about $1.5bn on the electronic payments business.
A valuation of between $1.5bn and $2bn equates to between 15 and 20 times the company’s gross profit.
Tyro, which counts Atlassian co-founder Mike Cannon-Brookes as among its investors and is run by former Tatts boss Robbie Cooke, generates about $100m of gross profit annually.
Tyro is expected to list by Christmas at the earliest and is expected to raise up to $250m.
Working on the IPO is Morgan Stanley and JPMorgan.
The company’s revenue for fiscal 2019 was $190m and is growing at 20 per cent a year.
Tyro was founded in 2003 by Peter Haig, Andrew Rothwell and Paul Wood and was the first new entrant into the Australian eftpos business since 1996.
It raised $100m in 2016, selling shares at $1.04 each to some of its 450-plus shareholders, with Tiger Global, TDM and Mr Cannon-Brookes participating.
Analysts are comparing the company to similar businesses including Square, Stone, Shopify and Adyen, which all trade at between 8 and 25 times sales.
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