SafeCharge, the payments solutions provider specializing in Forex brokers and online gambling sites, formally announced today that it intends to proceed with an initial public offering (IPO) to raise new equity capital to the sum of $100 million.
The company intends to apply for admission of its ordinary shares for trading on the London Stock Exchange Alternative Investment Market (LSE AIM). In a separate schedule filed to AIM today by SafeCharge, early April 2014 is the date given for the expected admission to the market.
SafeCharge International Group Limited is a payment partner across a diversified, blue chip client base, according to the announcement. The group is a supplier to merchants in the regulated European sports betting and gaming industry, retail securities derivatives and FX trading sector, as well as enjoying a presence in digital goods and services.
According to the announcement, the Group has over 500 active clients with notable examples being: Gala Coral, Rank Digital Gaming, William Hill and FXPro.
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David Avgi, SafeCharge Chief Executive Officer, commented on the announcement saying: “Online sales need new technology. Our business is at the heart of these rapid changes in online commerce, helping end users to safely, reliably and successfully transact with our merchant clients, using the latest technologies and techniques. We’re very excited by the prospect of listing in London, which will improve the Group’s profile amongst prospective clients and should enable us to grow both organically and through acquisitions.”
SafeCharge states that its business strategy is to leverage its current position in the global online payments market to drive growth while capitalising upon new opportunities, such as a digital wallet which is expected to be launched in Q4 2014 and the Group’s recently attained merchant acquirer status with MasterCard Europe. The company intends to acquire competitor payment service providers to extend the Group’s reach further into Asia-Pacific and the Americas.
Between 2010 and 2013 the total value of transactions processed by the Group on behalf of merchant clients increased from US$1.6 billion to US$4.8 billion. In the year 2013 the Group recorded turnover of US$43.2 million and adjusted EBITDA of US$11.3 million. Between 2012 and 2013 the Group’s revenue increased by 31.4 percent and adjusted EBITDA increased by 47.4 per cent.