The secondary sale values each share at $1,381.06, according to an internal memo to staff seen by Bloomberg. The document also notes that the company has already received demand for the shares from both new and existing investors.
Employees of the London-based company will be able to sell up to 20% of their stakes, said a source familiar with the matter, who asked not to be named because details have not yet been made public.
The deal would cement Revolut’s status as one of the world’s most valuable fintech companies. The new valuation exceeds the $45 billion it raised in a secondary share sale last year and puts the company above Barclays Plc’s market capitalization, albeit in a private deal rather than a public offering. “As part of our commitment to our employees, we regularly create opportunities for them to access liquidity,” a company spokesperson said in a written statement. “The secondary share sale of employees is currently ongoing and we will not comment further until it is complete.”
Molten Ventures Plc shares rose nearly 5.7% after Bloomberg first reported the private sale. Revolut is the largest holding in the FTSE 250 venture capital fund’s portfolio, accounting for just over 10%, according to the company’s annual report for the period to March.
Secondary share sales allow private companies to let existing investors sell their stakes to others without issuing new shares. With the IPO market largely sluggish over the past three years, a number of large fintech companies have turned to private deals to provide employees with much-needed liquidity.
Stripe Inc. has made several such deals. For example, in February, the company announced that it would work with investors to buy back shares from employees and shareholders in a deal that valued the business at $91.5 billion. In Revolut’s secondary share sale last year, the round was led by U.S. investors Coatue, D1 Capital Partners and Tiger Global. In that deal, CEO Nick Storonsky sold about $250 million worth of shares, representing between 40% and 60% of the company’s total stake of about $500 million, Bloomberg reported.
Revolut isn’t the only European fintech looking to capitalize on renewed investor optimism about the industry. Klarna Group Plc is considering reviving plans for an IPO in New York this month, according to Bloomberg.
Headquartered in London, Revolut is a fast-growing company that served more customers than HSBC Holdings Plc last year, helping the British fintech grow revenue by 72% to $4 billion and boost profits. It now has more than 60 million customers.
The digital finance company is continuing its international expansion and, according to Bloomberg, is considering hiring investment bankers for a potential acquisition in the US to obtain a banking license there.
Source: Bloomberg