Jefferies leading Nayax’s TASE IPO at $1b valuation


Are even giant Israeli expertise corporations beginning to see the native inventory alternate as an alternative choice to an IPO on Wall Road? This week, fintech firm Nayax filed a draft prospectus for a $150 million (NIS 484 million) providing, at a pre-money valuation anticipated to be over $1 billion – a valuation that previously would straightaway impel the corporate’s flotation abroad. The flotation consists of a proposal on the market by the corporate’s founders – brothers Yair and Amir Nechmad and David Ben-Avi – who will promote shares to the tune of NIS 194-234 million.
An fascinating facet of Nayax’s forthcoming IPO is that it’s structured as a world providing on the Tel Aviv Inventory Alternate. The underwriters are Jefferies, with Oppenheimer and Chief Capital Markets. Jefferies will carry abroad buyers to the providing, and in response to sources acquainted with the matter, greater than 60 conferences have to this point been organized with international buyers, even earlier than the roadshow.
Nayax is speaking to buyers from Australia, Europe, the US and Israel, the intention being to contact over 100 overseas buyers, and so far as is understood there may be excessive demand for these conferences.
That is the third providing held on the Tel Aviv Inventory Alternate on a world mannequin: Jefferies led the flotation of the inventory alternate itself in 2019, and likewise led the flotation of cut-price retail chain Max Inventory in 2020, two choices that had been profitable and by which a substantial portion of the shares had been offered to abroad buyers.
370,000 factors of sale in 50 international locations
Nayax was based in 2005 as a supplier of cost options for operators of computerized merchandising machines. It later expanded its vary of options, and it now affords personalized cost strategies, a cellular pockets software, and extra.
Nayax’s enterprise mannequin is predicated on retail subscribers who make a month-to-month cost for the service and cost clearance. The corporate says that in 2020 it cleared about half a billion transactions. It at the moment helps greater than 370,000 factors of sale, and thru distributors is energetic in 50 international locations.
Yair Nechmad beforehand managed mineral water firm Eden Springs (Mei Eden). Ben-Avi is a expertise entrepreneur, and Amir Nechmad was an actual property lawyer and investor.
Amir Nechmad holds 31.4% of the corporate, absolutely diluted; Yair Nechmad holds 31.2%; and Ben-Avi hols 30%. Fintech firm Safecharge, which was once managed by Teddy Sagi, invested $17.4 million in Nayax in 2018, and likewise purchased shares from the founders, however it exercised a put choice to promote the shares again to the three.
Within the supply on the market within the framework of the IPO, Yair Nechmad will promote 4.9 million shares, which on the anticipated providing value (NIS 10-12 per share) will fetch NIS 49-59 million. He’ll stay with shares price NIS 866 million-1.04 billion. Amir Nechmad will promote 6.5 million shares for NIS 65-78 million, and can stay with shares price NIS 930 million-1.1 billion. Ben-Avi will promote shares for NIS 81.3-97.5 million, and can stay with a holding price 796-955 million.
Rising income, rising loss
Nayax employs 400 individuals, 270 of them in Herzliya, and about 40% of its workforce is employed on analysis and growth. In line with the corporate’s presentation, it accepts greater than 80 sorts of cost and 40 currencies, and it has cooperation agreements with Mastercard, Visa, PayPal, Apple Pay and different cost corporations. The corporate sees using money declining from 42% of transactions in 2018 to 33% in 2023, whereas the merchandising machines market in 2025 might be price nearly double what it was price in 2019, at $24.6 billion.
In 2020, Nayax had income of $78.8 million, 23.8% greater than in 2019. Prior to now two years the corporate has posted an working loss ($2.2 million in 2020), though it had an working revenue in 2018.
The online loss in 2020 was $6.1 million, up from $5.5 million in 2019 and $3.6 million in 2018. Money movement from common exercise was, nonetheless, constructive at $6.5 million in 2020, after a adverse $1.4 million in 2019. On the finish of final yr, the corporate had money and financial institution deposits amounting to $9.1 million.
The prospectus states that, final January, the three founders and controlling shareholders signed a mortgage settlement with an Israeli monetary establishment, which lent them $5 million every, $15 million altogether, for financing the corporate’s exercise by the use of homeowners’ loans.
The mortgage principal bears annual curiosity of 10%. When the flotation takes place, the debtors might be obliged to repay it in full. The mortgage settlement embody a lien on 16.9 million shares of every of the debtors, or 50.6 million shares altogether, which might be price NIS 500-600 million within the IPO.
Revealed by Globes, Israel enterprise information – – on April 29, 2021
© Copyright of Globes Writer Itonut (1983) Ltd. 2021


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *