Australian B2B FinTech Tyro Payments is looking to go public and is pursuing a $1 billion valuation with its float on the Australian Securities Exchange (ASX), the Sydney Morning Herald reported Monday (Nov. 18).
According to reports, Tyro plans to raise AUS$252.7 million (USD$172.32 million) in its initial public offering (IPO), which which it filed with regulators and the ASX on Monday.
Tyro says it is Australia's fifth-largest payments provider. The company targets small and medium-sized businesses with a range of services, including an EFTPOS (electronic funds transfer point of sale) offering, online payments, a business bank account service and business loans.
Reports said existing investors, including Tiger Global and TDM Growth Partners, as well as David Thodey and tech billionaire Mike Cannon-Brookes, say they will wait until Tyro releases its 2020 financial report before selling shares. Tyro said up to $125 million in shares sold on the ASX would be new stock, with the rest provided by existing investors.
The company's most recent financial reports show net losses of $18.6 million in the last fiscal year, down from $18.8 million in losses the year prior. Institutional investors have reportedly committed to purchasing up to $140 million of stock once Tyro goes public.
“I am delighted to have the opportunity to invite new shareholders to join us in the next stage of the Tyro journey as we build upon our solid foundation to pursue an exciting growth strategy,” said Tyro Payments Chairman David Thodey in a statement.
“Our focus remains firmly on challenging the status quo for the benefit of our merchants,” added Tyro Payments Managing Director and CEO Robbie Cooke.
Tyro plans to use the funding from the float to invest in its payments and banking services and expand into the accommodation and services market to fuel growth of its eCommerce offerings.
Tyro secured $72 million in funding in 2015.