OzForex Group plans to raise $439.4 million in an initial public offering that will enable investors, including founder Matthew Gilmour and private equity firms Accel Partners and the Carlyle Group, to sell part or all of their stakes.
OzForex, a Sydney-based provider of international money transfers, will sell 219.7 million shares at $2 each, or 91.5 per cent of the company’s total shares, according to its IPO prospectus. OzForex’s shares are being sold at 21.7 times forecast earnings for the 12 months to September 30, 2014.
Neil Helm, OzForex's chief executive, told DataRoom there were no other companies in the Australian market whose valuations could be compare with OzForex.
OzForex's shares are expected to begin trading on the ASX on October 11 with a market value of $480 million.
"The ASX has shown strong support for internet businesses," says Helm.
Investors in OzForex will receive $415.4 million from the sale of their stock. The company itself will get $24 million that it will use for working capital.
OzForex founder Matthew Gilmour and original investor G&A Lord Ltd. each have 17.6 per cent stakes in the company. Gilmour and Lord will sell some of their shares in the IPO but each will retain a four per cent holding.
US private equity firm Accel, with a 22.7 per cent shareholding, Washington-based Carlyle Group, with a 20.4 per cent stake, Macquarie, with a 19.9 per cent equity holding, and Carboni Ltd., with a 1.9 per cent interest will sell all of their stock in the IPO.
In the 12 months to June 30 this year, OzForex made a profit of $17.1 million on 460,000 international payment transactions worth $9.1 billion.
The company provides online international payment services for consumer and business clients. It enables clients to make international payments between bank accounts in over 50 currencies and more than 900 currency pairs.
OzForex’s leadership team are eligible to a $5.3 million cash payment.
Goldman Sachs Group Inc and Macquarie are managing the IPO and will be paid a base fee of 2.5 per cent of the total offer proceeds, or potentially $10.9 million. The two investment banks could also get an incentive fee of 1.5 per cent of total offer proceeds. Goldman and Macquarie’s costs associated with the IPO will also be reimbursed.
San Francisco-based investment bank Financial Technology Partners LP will be paid $6.25 million for advising OzForex on a potential sale to a company.
KPMG will be paid $750,000 for preparing reports relating to the IPO and PricewaterhouseCoopers $290,000.
Lawyers at Clayton Utz will be paid $1.3 million for acting as OzForex’s Australian legal advisers while US attorneys Kirkland & Ellis will be paid $490,000.