Cuscal mandates Bell Potter and Ord Minnett for IPO bookbuild
Payments outfit Cuscal has appointed retail brokers, as it progresses plans to raise up to $378.4 million in what’s slated to be the year’s second-largest initial public offering.
Street Talk understands Cuscal sent requests for proposal to mid-tier stockbrokers earlier this month and has selected Bell Potter and Ord Minnett as co-managers. Bank of America is sole lead manager.
Cuscal connects 87 small banks, non-banks and fintechs to the payments system. iStock
Bells and Ords would be tasked with selling a slice of the IPO to their retail and high-net-worth networks, after Bank of America has offloaded the bulk of the raise to institutional clients.
BofA opened the books for the IPO’s institutional leg on Friday, calling for bids between $2.50 and $2.60 a share. The price range represented 16.5-times to 17.1-times Cuscal’s net profit after tax excluding operating costs for the 2024 financial year.
The indicative enterprise valuation is 9.4-times to 9.7-times this financial year’s pro forma adjusted EBITDA. Cuscal expects to have a 2.6 per cent to 2.7 per cent dividend yield in the second half.
The offer size is $336.7 million to $378.4 million. Subject to equities investors’ appetite for the deal, Cuscal could have a market capitalisation of as much as $531.4 million.
The institutional book is scheduled to close on November 3. Cuscal is due to start trading on the ASX by November 23.
Should Cuscal’s listing succeed, it would be 2023’s second-largest IPO after chemical business Redox, which raised $402 million to list with a $1.3 billion market capitalisation in July. The family-owned business sold shares at $2.55 apiece and has struggled to break through the listing price – it closed at $2.32 on Friday. Then there’s
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