SumUp is considering listing an initial public offering in London after the stock exchange’s three-year listing drought. The move to go public is expected to raise money for acquiring competition, ensuring the company’s steady growth within the UK markets.
The UK card reader company SumUp is considering an initial public offering (IPO) that could value the business between $10B and $15B.
SumUp, best known for its card readers used by small and medium-sized businesses, is considering listing in either London or New York, according to people familiar with the company’s plans.
London’s IPO market could get a jolt
The IPO launch is especially significant for the London Stock Exchange as it has been experiencing a listing drought for the past three years. SumUp could end that dry spell if it proceeds with its listing there.
Several high-profile companies in the UK have either chosen to list in the U.S. or plan to shift their listings there to benefit from higher valuations and more favorable investor sentiment.
Starling Bank is preparing a secondary share sale at a potential £4B ($5.44B) valuation, while Revolut is in talks with Coatue over a fresh fundraising round. The UK money transfer firm Wise is in the process of relisting in the U.S., and Sweden’s Klarna made its U.S. debut earlier this month.
SumUp is reportedly already in discussions with investment banks and the firm is aiming to float within the next year.
SumUp’s IPO strategy
SumUp intends to use the proceeds from the IPO to buy rival payment companies in Europe. This will allow SumUp to grow faster and face less competition.
The fintech, founded in 2012 by Marc-Alexander Christ, Stefan Jeschonnek, Jan Deepen and Daniel Klein, has grown rapidly. It now claims to serve over 4 million customers in 36 countries and has expanded its services beyond card readers to include business accounts, invoicing, and payment solutions.
In 2022, SumUp raised €590M ($695M) in a funding round led by Bain Capital at a valuation of €8B ($9.4B), though it had originally targeted €20B ($23B). Last year, the company explored a secondary share sale with Goldman Sachs, aiming for a $9B valuation.
SumUp’s CFO Hermione McKee said in 2023 that the firm was under no pressure to go public, but recent changes in the market seem to have accelerated its plans. The company also set a target of €160M in EBITDA last year.
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