In our SPAC Overview Part 2, we had indicated that the demand for Nuvei’s IPO would likely be strong given the pricing and the industry in which it operates. Not surprisingly, the company priced its IPO at US$26.00 per share, up US$21-22 previously.
It led to an oversubscribed IPO and the company’s share price soared when it began trading on the TSX on September 18. It opened at CAD$45.25 and closed the day at CAD$46.75.
Worth noting, Mat bought a speculative tranche on the day of the IPO once the price dipped. Using limits, he was able to purchase the stock at $42.11 per share (near the day’s low). Mat intends to slowly average into his position in the company and is a long-term hold for his growth portfolio.
We believe the company offers good value in the $47-48 range, but has plenty of upside before it rises to trade inline with peers such as Lightspeed and Square.
Novacap Portfolio Company Nuvei Corporation Completes US$833 Million Initial Public Offering and Concurrent Private Placement
Listing is the Largest Technology IPO by both equity capital raised and market capitalization at the time of listing in TSX history
MONTREAL, Sept. 22, 2020 /CNW/ – Novacap, one of Canada’s leading private equity firms, announced today that portfolio company Nuvei Corporation (TSX: NVEI), a global payment technology provider, closed its US$833 million initial public offering on the Toronto Stock Exchange and concurrent private placement.
According to the TSX, at its offering price, Nuvei’s IPO represents the largest technology IPO by both equity capital raised and market capitalization at the time of listing in TSX history
“At Novacap, our stated mission is to add value to each business we invest in, and our partnership with Nuvei is a prime example of this philosophy in action,” said David Lewin, Senior Partner at Novacap. “Since our initial investment three years ago at a valuation of approximately US$430 million, Novacap’s active support and expertise helped Nuvei optimize its operations and become a platform for strategic acquisitions. During this time, Nuvei significantly increased the scale of the business, the number of markets it serves, and its geographic reach.”
“I would like to congratulate Philip Fayer and the entire Nuvei team on reaching this exciting milestone,” said Pascal Tremblay, President, CEO and Managing Partner TMT. “Nuvei’s IPO represents a significant event for both the company and our investors, and is a testament to a true partnership between Nuvei, Novacap and our co-investor CDPQ. We are proud of our relationship with the Nuvei team and look forward to supporting its continued growth.”
No securities regulatory authority has either approved or disapproved the contents of this press release. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Nuvei Corporation in any jurisdiction in which such offer, solicitation or sale would be unlawful. These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any U.S. state securities law and may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom.
About NovacapFounded in 1981, Novacap is a leading Canadian private equity firm with CA$3.6 billion of assets under management. Its distinct investment approach, based on deep operational expertise and an active partnership with entrepreneurs, has helped accelerate growth and create long-term value for its numerous portfolio companies. With an experienced management team and substantial financial resources, Novacap is well positioned to continue building world-class businesses. Backed by leading global institutional investors, Novacap’s deals typically include leveraged buyouts, management buyouts, add-on acquisitions, IPOs, and privatizations. Over the last 39 years, Novacap has invested in more than 90 companies and completed more than 140 add-on acquisitions. Novacap has offices in Brossard, Quebec and Toronto, Ontario. For more information, please visit www.novacap.ca.
About NuveiNuvei Corporation is the payment technology partner of thriving brands. It provides the intelligence and technology businesses need to succeed locally and globally, through one integration – propelling them further, faster. Uniting payment technology and consulting, Nuvei helps businesses remove payment barriers, optimize operating costs and increase acceptance rates. Nuvei’s proprietary platform offers direct connections to all major payment card schemes worldwide, supports 450 local and alternative payment methods (assuming the successful completion of its acquisition of Coöperatieve Vereniging Smart2Pay Global Services U.A.) and nearly 150 currencies. Nuvei’s purpose is to make our world a local marketplace.
SOURCE Novacap Management Inc.
For further information: Novacap Contact: Alexandra Troubetzkoy, NOVACAP, +1 450-651-5000