Trustly Group AB’s plan to raise almost $1 billion through an initial public offering in Stockholm may be followed by a second listing in New York, according to its chief executive.
Oscar Berglund, the CEO of the Swedish digital payment firm, says the U.S. is turning into its biggest growth market. For that reason, Trustly may well target a dual listing that moves its investor base closer to where business is booming, he said in an interview with Bloomberg Television’s Anna Edwards.
For now, Europe is where the investor base is and a Stockholm IPO makes the most sense for the company’s debut, he said. But settling on the Swedish capital was “not entirely easy,” Berglund said in a separate phone interview. He said no final decision has been taken yet on additional future listings, “but that possibility does exist.”
The planned IPO, unveiled on Monday, means Sweden could have a fintech valued at around $9 billion trading on its main stock exchange within weeks. The initial share float will target 8 billion kronor ($934 million), as Trustly becomes the latest technology company to see its fortunes transformed by a surge in demand for online services.
With its biggest shareholders including Nordic Capital, Alfven & Didrikson and BlackRock Inc., Trustly is part of a tech industry that’s ridden a wave of intense growth during the pandemic. Klarna Bank AB, another Swedish payments firm, last month raised $1 billion, giving it a valuation of over $30 billion. Like Klarna, Trustly has enjoyed rapid expansion in the U.S., where its revenue grew almost 300% at the end of 2020.
Berglund says Trustly’s appeal lies in its digital account-to-account payments, which bypass card transactions altogether. He says that gives the company an edge in the digital payments world.
The CEO has repeatedly underlined his belief that the shift from offline to online commerce will stick even after the pandemic ends.
Still, bankers and investors arranging the offering will be mindful of the recent flop by Deliveroo Holdings Plc, which on Friday saw its shares trade a third below its IPO price amid concern that demand for its services could ease as economies in Europe reopen.
Carnegie Investment Bank, Goldman Sachs Bank and JPMorgan have been appointed joint global coordinators for Trustly’s listing.
