Nuvei closes initial public offering at $833 million USD


Nuvei has reportedly closed its initial public offering (IPO) through the Toronto Stock Exchange (TSX) at $833 million USD.

According to a statement from Novacap, the Montréal FinTech company has completed its IPO and concurrent private placement.

Nuvei is the largest technology IPO by both equity capital raised and market capitalization in TSX history.

Nuvei began trading on the TSX last week, garnering interest that led to a surge in stock price. The company thus became the largest technology IPO by both equity capital raised and market capitalization in TSX history. The IPO had been expcted to pull in $700 million USD.

The reported closing of the IPO comes prior to Nuvei officially beginning public trading on the exchange. Nuvei began trading through the TSX last week, but was only available to institutional investors, on an “if, as and when issued” basis. A spokesperson for the company recently told BetaKit that public trading is expected to begin Wednesday.

Novacap, which owned 37.84 percent total voting rights, was said to be selling $75 million USD of its stock through the IPO. Novacap and Caisse de dépôt et placement du Québec (CDPQ) were some of the largest shareholders in Nuvei, with a relationship to the comapny that dates back to a $525 million CAD investment in 2017. At the time, Novacap and CDPQ, along with founder and CEO Philip Fayer, acquired minority stakes in Nuvei. Both institutional investors also participated in Nuvei’s $358 million CAD ($270 million USD) December funding round.

RELATED: Nuvei stock surges, representing largest tech IPO in Canada

According to public filings, Nuvei plans to use the proceeds from the IPO to repay some of its outstanding debts. The company also plans to use the financing to fund its “working capital requirements and further implement its growth strategy, which may include organic growth and product innovation initiatives as well as future strategic acquisition opportunities.”

Notably, Nuvei is in the process of purchasing Dutch payment service provider Smart2Pay. The transaction has yet to be completed. In August 2019, Nuvei acquired UK-based SafeCharge International Group for about $1.1 billion CAD.

Founded by Fayer, chairman and CEO, Nuvei provides payment solutions to merchants, technology, and distribution companies, serving companies in Canada, the United States, Europe, Latin America, and the Asia Pacific region. Formerly Pivotal Payments, the company received one of its first large investments from Goldman Sachs totalling $60 million CAD in the mid-2000s.

Meagan Simpson

Meagan Simpson

Meagan is the Senior Editor for BetaKit. A tech writer that is super proud to showcase the Canadian tech scene. Background in almost every type of journalism from sports to politics. Podcast and Harry Potter nerd, photographer and crazy cat lady.

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