SafeCharge, the payments solutions provider specializing in Forex brokers and online gambling sites, is about to go public on the London Stock Exchange Alternative Investment Market (LSE AIM), according to media publications. The firm, a Central Bank of Cyprus authorized payment institution, plans to raise $100m in new equity from the IPO for acquisitions, for expansion into Asia and for the launch of a new digital wallet.
Gambling software tycoon, Teddy Sagi, holds 90% of the shares of SafeCharge founded in 2006 by its ongoing Chief Executive Officer, David Avgi, who owns the remaining 10%. The LSE AIM listing will create a free float of about 30% diluting Mr. Sagi’s stake to 63%. Mr. Sagi became a billionaire after listing the gaming company which he founded, Playtech, on the London Stock Exchange in 2006.
SafeCharge processed $5bn in transactions during 2013 and its revenues were $43.1m, an increase of 31.4% from the previous year, while its adjusted EBITDA was $11.2m. Analysts forecast revenues of $61.2m for 2014 and an adjusted EBITDA of $18.1m. After the listing, SafeCharge market valuation is estimated to be about $370 million (£220 million).
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SafeCharge received the “Most Innovative Financial Product Award” in November of last year, at the Forex Magnates London Summit 2013.
Forex Magnates will publish an interview with a senior executive at SafeCharge later on to provide more information on the plan.
In addition to this story, Forex Magnates has learned from industry sources that Safecap (Markets.com) is also aiming for an IPO within the next twelve months from now, supposedly for a similar valuation.