OzForex founder Matthew Gilmour is set to reap more than $60 million through the company’s debut on the ASX, which will go ahead in October.
The company lodged its prospectus yesterday, confirming it plans to raise $440 million in what will be one of the biggest IPOs of the year – and one that will allow founders and shareholders to sell at least part of their stakes.
The upcoming IPO has tech veterans excited. Pollenizer co-founder Mick Liubinskas told SmartCompany the possibility of having employees and founders cash out to create a new generation of investors is “exciting”.
“There is more activity happening now, and it’s exciting to see,” he says – referring to the recent news Matt Barrie would float his company Freelancer.com on the ASX before the end of the year.
OzForex will sell 219.7 million shares at 2% each, representing 91.5% of the entire company. Shares will be sold at 21.7 times the forecast earnings for the year to September 30, 2014.
OzForex is set to list with a market cap of $480 million.
The company’s financials are strong. Net profit after tax was $13.2 million in the 2010-11 year, $13.1 million in 2012 and $17.1 million in 2013.
Founders Matthew Gilmour and Gary Lord will sell over 30 million shares each netting them both a payout of $60 million, although both will maintain a 4% stake after the float is completed. Members of the leadership will be eligible for an additional cash payment of $5.3 million on the first anniversary of the IPO.
Investor Macquarie will sell all its shares for a benefit of $90 million, while US-based Accel Partners will reap $110 million from a full sale. The company invested between $70-110 million three years ago.
The Carlyle Group will also sell all its shares for $92 million.
Meanwhile, Goldman Sachs and Macquarie are managing the IPO, with San Francisco investment group Financial Technology Partners to be paid $6.25 million for its advice. KPMG and PWC will be paid $750,000 and $250,000 for their services.
“The directors believe the group’s business model is attractive to consumer and payment specialists,” chief executive Neil Helm said in the prospectus.
The company is performing well, managing transactions worth more than $9 billion, but the prospectus detailed several risks including the possibility of a competitor entering the market, relationships with banks that could be terminated or new state or federal legislation.
The OzForex float represents a key moment in the Australian tech scene, with investors now speculating whether the IPO could encourage other businesses to go public as well.
Last week Matt Barrie announced he would take his company Freelancer.com public, while reports also indicate online retailer Kogan and software group Atlassian are looking to float soon.