Tyro announces plans to list on ASX and push into business lending
(19 November 2019 – Australia) Tyro Payments is seeking to raise $252.7 million in an IPO as it looks to capture a bigger slice of the business lending market, ‘buy now, pay later’ platform integrations and fintech mergers and acquisitions.
The payments company intends to list on the Australian Securities Exchange on Friday 6 December, with the offer valuing the company at $1.25 billion to $1.36 billion on a market capitalisation basis and $1.08 billion to $1.2 billion in terms of enterprise value. The raise is being jointly led by investment banks JPMorgan and Morgan Stanley.
The prospectus, lodges with the Australian Securities and Investments Commission, outlines Tyro’s goal to grow their pool of merchants by 20 percent to 36,000 in the financial year.
In attempting to claw market share from the big four banks, Tyro told investors it is pinning its ambitious growth plans on integrations with third-party payments platforms, including controversial Chinese-domiciled and buy now, pay later operators.
But while partnerships with these providers will form part of its future revenue model, Tyro also aims to compete with major e-commerce players like Afterpay and PayPal by way of its own platform launched in 2019 and backed by Mastercard Payment Gateway Services.
The raise will also help bankroll Tyro's push into business lending, which the prospectus outlined as a significant opportunity with the payments firm intending to capitalise on growing demand for non-bank lenders from small businesses hungry for credit.
Subscribe