SumUp Aims to Take Card Reader Firm Public
SumUp, a United Kingdom-based card reader company, is reportedly considering a stock market listing and initial public offering (IPO).
The FinTech is mulling an IPO that could value the company at $10 billion to $15 billion, the Financial Times (FT) reported Monday (Sept. 15), citing unnamed sources.
SumUp is looking at the New York and London stock exchanges, and a London listing could provide a rare victory for that exchange amid a flurry of IPOs on the United States markets, the report said.
SumUp has been in talks with investment banks about its plans and is targeting a listing in the next year, according to the report. SumUp is aiming to raise money to acquire competitors, and the company sees the payment processing market as primed for consolidation, especially in Europe.
The news followed a Reuters report from last year that SumUp was working with Goldman Sachs on a secondary share sale in hopes of valuing the company at $9 billion.
Also in 2024, SumUp received a $1.6 billion private credit package. Chief Financial Officer Hermione Tomic said at the time that the funding would let the company “refinance existing debt, as well as have firepower to take advantage of any opportunities that arise over the next six months.”
SumUp’s IPO plans are happening as investor interest in U.K. FinTechs is increasing, the FT report said. For example, Starling is preparing for a secondary share sale that could value the company at 4 billion pounds (about $5.4 billion), while Revolut is in discussions with investment firm Coatue over a new funding round.
Assuming SumUp does choose to list in the U.K., it would mark a victory for the London Stock Exchange following a three-year IPO drought, as lower valuations have led U.K. companies to either go public in the U.S. or move their listings, according to the report.
The news comes in the wake of a wave of listings on the U.S. market last week, with many high-profile deals raising more than $4 billion.
Among the companies going public were pay later firm Klarna, cryptocurrency exchange Gemini and blockchain platform Figure Technology Solutions.
“To say this was a week that the markets focused on FinTechs would be an understatement,” PYMNTS wrote last week, noting that “Klarna and Figure Technology jumped double digits on their first days of trading.”
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