The listing of Adyen, the Dutch firm whose payments processing technology is used by Facebook (NASDAQ: FB) and Netflix (NASDAQ: NFLX), got off to a strong start on Tuesday when investor demand for its shares covered those on offer within an hour.
Existing shareholders in Adyen, whose customers also include Uber and eBay, are selling a stake of up to 14.2% in the financial technology company which indicated in its prospectus its total equity would be valued at 6.5 billion-7.1 billion euros ($7.3 billion-$8.3 billion) when it lists on June 13.
Adyen is debt-free and profitable, and its listing, in the form of a secondary share offering, had been seen as one of the most prominent in Europe this year, after several were shelved last month.
Payments companies are in high demand.
U.S. giant PayPal (NASDAQ: PYPL) agreed to buy smartphone payment terminal provider iZettle last month for $2.2 billion in the midst of the Swedish firm's own IPO.
Adyen forecasts medium term net revenue growth of 25-30% per year, and of at least 40% in 2018. That follows a 2017 net revenue rise of 38% to 218 million euros.
The offer will be entirely secondary, the company's prospectus showed.
Current Adyen shareholders include Index Ventures, Felicis Ventures, Temasek and Iconiq Capital, the Silicon Valley fund that is an investment vehicle for the founders of Facebook, LinkedIn and Twitter.
PayPal, for its part, opened trading Tuesday morning at $84.28, down 29 cents from Monday’s close.
