Nuvei Corporation, best known for supplying payment technology to online gambling platforms, has decided to go public.
Introduction to Nuvei Corporation
Based in Montreal, Nuvei is said to be worth USD 2 billion and handles more than $14 billion in transactions per year.
Established in 2003, the company reached new heights when it gained a big investment from Goldman Sachs. The company used the funds to acquire several small names in the country.
The company started to offer services to the gambling industry in a major way when it purchased SafeCharge in 2019. It’s currently the country’s largest non-bank and private payment processor and enjoys a very good reputation.
More About the IPO
According to reports, the company intends to use the IPO proceeds to get rid of debt. However, selling shareholders did not disclose the amount of money they plan to raise through the IPO.
Many believe the IPO will greatly help the company raise its valuation. The company will be listed on the Toronto Stock Exchange with the symbol NVEI.
What the Team Has to Say
“Nuvei’s role in the payments ecosystem has become increasingly important due to the continued innovation in payments for mobile commerce and e-commerce transactions and the lack of satisfactory solutions from traditional merchant acquirers,” said the official statement.
Credit Suisse Group AG, Goldman Sachs Group, Royal Bank of Canada, and Bank of Montreal are some of the major names associated with the company.
These banks can choose to sell an additional 15 per cent of the shares once everything finalizes.
Nuvei isn’t the first company in this niche to opt for an IPO. Tech states in the country have skyrocketed in the last few months. It’s one of the few sectors to have stayed strong during the pandemic.
Dye & Durham Ltd went public in July raising USD132.4 million.
A small software house based in Montreal named Lightspeed POS Inc., shocked everyone when it raised more than USD $350 last year.
Shopify broke records and surpassed the Royal Bank of Canada to become the country’s most valuable country.
How Does This Affect the Gambling Industry?
Nuvei is an international name offering payment solutions to a variety of businesses around the world.
Its company, SafeCharge, is known for working with gambling platforms. It provides services to various betting companies in Canada and around the world.
Nuvei’s SafeCharge was last year in the news for partnering with Grand Casino Baden, a leading operator in Switzerland, to process payments for its online platform jackspots.ch.
It has also partnered with other names including STS Gaming Group, Poland’s top bookmaking company.
The system supports more than 150 currencies and transacts over $36 billion per year. Experts believe that this IPO will allow Nuvei to serve even more businesses and countries.
Just last month, it got approval from the Indiana Gaming Commission to start offering services on sports bets in the state.
With more and more casinos introducing cashless payments, we won’t be surprised if Nuvei makes a larger impact.