Trintech will today announce details of its long-awaited plans for a stock market flotation.
The Dublin-based electronic payments company plans to seek a dual listing on the German Neuer Market and US Nasdaq stock exchanges, following a promotional road-show over the coming weeks.
Recent reports have speculated the company will be hoping to raise $30-40 million (€28.6-38 million), though industry sources suggest these figures may be conservative and it is more likely to pitch at around $75 million. Last year, Trintech managed to raise $20 million in private investment capital before its expected initial public offering. At the time, the deal valued the company at more than $100 million. The company expects revenues will exceed $25 million this year.
The dual listing fits in with comments made in April by Mr Cyril McGuire, who, with his brother John, shares the chief executive officer position in Trintech.
At the time he said the firm was learning from the experiences of its Irish peers which had taken a hit on the Nasdaq stock exchange. The European listing is most likely designed to offset the highly volatile Nasdaq, by attracting investment from a more conservative investor base. A large proportion of Trintech's business is also in Germany.
The McGuire brothers currently retain a significant 70 per cent shareholding in Trintech. By publicly trading more than 50 per cent of the company, it will offer greater stock liquidity.
Deutsche Bank is believed to have been appointed as Trintech's broker for the flotation. It recently acquired Baltimore-based investment bank BT Alex Brown, which Trintech initially appointed as its broker. It was one of several financial and industry investors which took a 17 per cent stake in Trintech last year after the $20 million investment.
Davy Stockbrokers have also been appointed as corporate advisers to the deal.
The initial public offering will fuel Trintech's investment plans in new markets where it plans to expand aggressively. Its biggest competitor is US company Verifone, which was bought by Hewlett-Packard for $1.15 billion in 1997. At the time of the take-over, Verifone was generating annual revenues of $472 million. Last year, US firm Security Dynamics Technology invested $5 million in Trintech. The stake will account for less than 10 per cent of Trintech, which is now estimated to have a market value of more than $100 million. Security Dynamics Technology is the parent company of RSA, a major brand name in US e-commerce. At the time, its endorsement of Trintech did a great deal to enhance Trintech's credibility in the e-commerce market.
Trintech employs 225 people between its joint headquarters in Silicon Valley, California, and Leopardstown, Co Dublin.
The 25,000 sq. ft Dublin facility recently opened an e-commerce facility, while plans are under way to expand the US operation significantly.
