Network International IPO has Demand for all Shares on First Day

(Bloomberg) -- Network International has demand for all stock being sold on the first day of an initial public offering that will value the Middle Eastern payment processor at as much as $3.1 billion, people familiar with the matter said.

Network International set the price range for its London IPO at 395 pence to 465 pence per share, implying a market value of 1.98 billion pounds to 2.33 billion pounds ($2.6 billion to $3.1 billion), the firm said in a statement on Monday. The offering will allow shareholders Emirates NBD PJSC, Warburg Pincus and General Atlantic to reduce their stakes.

Network International will be among the first companies of scale to test investor appetite in Europe’s lackluster IPO market, where concerns over Brexit and slowing growth in Germany and France have helped push volumes at the start of the year to the lowest level since the financial crisis, according to data compiled by Bloomberg.

Still, investors are expressing interest in select deals that have made it to the market in recent weeks. Italian financial payments peer Nexi SpA’s advisers said its IPO was oversubscribed last week and Swiss trainmaker Stadler Rail AG’s IPO had demand for all shares on the first day of its sale Monday.

The expected institutional offer size for Network International consists of at least 125 million shares, assuming no exercise of the over-allotment option and excluding the cornerstone investment.

Read more: Mastercard to Invest $300 Million in Network International’s IPO

Network International expects to be eligible for inclusion in FTSE U.K. indexes. Warburg Pincus and General Atlantic jointly own a 49 percent stake, while Dubai’s biggest bank, Emirates NBD, holds the remaining 51 percent.

Citigroup Inc., Emirates NBD, JPMorgan Chase & Co., Morgan Stanley, Barclays Plc, Goldman Sachs Group Inc., Liberum Capital Ltd. and Evercore Inc. are working with the firm on the listing.

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