Trustly CEO Tries to Talk Down Speculation of Imminent IPO
(Bloomberg) -- The chief executive of Swedish digital payment provider Trustly Group AB sought to talk down speculation his company has moved closer to an initial public offering, and suggested it can still settle on other ways to tap the market.
“No decision has been taken on any IPO,” CEO Oscar Berglund told Bloomberg on Tuesday. “We are preparing our processes, which would give us strategic optionality and shorten our time to market, if we were to decide to pursue an initial public offering.”
But the IPO decision could materialize after meetings with prospective investors over the next few weeks, according to a person familiar with the matter who asked not to be identified discussing private matters.
Speculation over e-commerce IPOs has reached fever pitch, as many fintech companies emerged stronger than ever from the pandemic. Klarna Bank AB, another Swedish payments firm, earlier this month raised $1 billion, giving it a valuation of $31 billion. Like Klarna, Trustly has enjoyed rapid expansion in the U.S.
The fourth quarter delivered almost 300% growth in the U.S. and “we’re growing across the board,” Berglund said.
The Stockholm-based company, whose controlling shareholder is the private equity firm Nordic Capital, is part of a tech industry that’s seen demand for its services soar as people have relied on online services more than ever over the past year.
“Obviously the move from offline to online commerce has accelerated due to the pandemic,” Berglund said. “That’s likely to stay to a large extent.”
On Tuesday, the payments firm reported what it described as “another record quarter” with revenue and adjusted profits increasing by 44% and 36%, respectively, for the period October to December, according to a separate statement.
The CEO said he expects that the market’s shift from card payments to account-to-account payments is “only the beginning.”
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