Cuscal Limited, the end-to-end payments outfit owned by MasterCard, Bendigo and Adelaide Bank and most of the big credit unions, is busy scheduling investor meetings ahead of its mooted ASX float.
Mastercard is one of the major shareholders in Cuscal. Michel O'Sullivan
Bank of America has been engaged as sole lead manager and sent invitations on Monday as part of a global non-deal roadshow, sources said. The company is targeting a potential IPO before the end of the year, making it one of the few companies coming to market this year.
Cuscal will seek to raise around $300 million from investors, valuing the business at up to $500 million.
A handful of early-stage NDR meetings were also held between May and July. Investors were told Cuscal was the only end-to-end business-to-business payments platform with connectivity across the Australian payments landscape. The business offers payments infrastructure for a range of needs including cards and real-time payments, serving banks, credit unions and fintechs.
Cuscal was created in 1990 by member organisations including Australia’s largest credit union CUA. Its register also includes Bendigo and Adelaide Bank and Mastercard.
In 2021, the company moved to overhaul its share register ahead of a potential IPO, leading some smaller shareholders to feel they could be squeezed if Cuscal raises significant amounts of capital.
Cuscal had revenues of $182 million in the last financial year, and has grown net profit at 12 per cent over the past 10 years on a compounded basis. It reported net profit after tax of $23.4 million for the year to June 30.
In March, the company acquired Basiq, a Sydney-based start-up backed by investors including Westpac and National Australia Bank. It wasRead more on afr.com