Europe's biggest new listing this year has started trading —Italy's Nexi is a rare bright spot amid a regional slump
- Shares in Nexi, Italy's biggest payment-services group, began trading on Tuesday.
- Nexi raised just over €2 billion euros (R31 billion) and secured a market valuation of about €5.7 billion when it listed last week, marking Europe's biggest IPO so far this year.
- The Milan-based group's public debut follows two other major listings in its sector in the past year, Network International and Adyen NV.
- Visit Business Insider South Africa for more stories.
Shares in Nexi began trading on Tuesday, after Italy's biggest payment-services group last week raised just over €2 billion euros (R31 billion) and secured a market valuation of about €5.7 billion (R89 billion) when it listed last week, marking Europe's biggest IPO so far this year.
While it's down 6% in Milan trading, it's a rare positive sign for European listings. Brexit worries and a market rough patch in 2018 saw many IPO plans shelved or scrapped altogether.
The Milan-based group- which issues credit cards, manages cash machines, and provides digital solutions - priced its shares at €9, giving it a value of €7.3 billion (R115 billion) including debt, according to Bloomberg. It raised capital of €700 million (R11 billion), which it has earmarked to pay down its debt of €1.7 billion (R26 billion).
Nexi has partnerships with around 150 Italian banks and commands a market share of 60% in card issuing, according to Bloomberg.
Its public introduction follows the billion-dollar debuts of two other European payment processors in the past year - Network International in London earlier this month, and Adyen NV in Amsterdam last June.
Unlike some big-name US IPOs lately, Nexi makes a profit. reported operating revenue of €931 million (R14 billion) in 2018, generating net income of €20 million (R315 million).
Receive a single WhatsApp every morning with all our latest news: click here.
Also from Business Insider South Africa:
- We compared the prices of Easter staples – and you can pay 44% too much for a chocolate bunny if you aren't careful
- WATCH: 10 robot dogs pull a truck in a slightly terrifying display of raw power
- MIT researchers discovered a way to move objects as heavy as a great white shark with your bare hands. Take a look.
- Chicken Licken fans may finally get home deliveries - the chain is in talks with Uber Eats
- As Notre-Dame burned, alt-right figures launched a campaign on social media falsely blaming Muslims for the blaze
- Ecuador says it has been hit with 40 million cyber attacks since Julian Assange was arrested at its embassy in London