Saxo Bank Weighs Sale After SPAC Collapses

Saxo Bank is reportedly pursuing a possible sale following an ill-fated attempt to go public.

The Danish bank, which offers digital investment and trading services, recently invited investment bankers to audition for advisory roles in a possible sale, sources told Reuters in a report published Tuesday (April 18).

Two of the four sources cited in the Reuters report said a deal could value Saxo at between $1.6 billion and $2.1 billion, with another source saying a sale could begin later this year. The sources also said the sale is expected to draw interest from private equity groups, asset managers and European banks.

A spokesperson for Saxo declined to comment when reached by PYMNTS.

According to Reuters, Saxo began negotiations in September 2022 to a special purpose acquisition company (SPAC) and go public, though the talks were canceled with the bank citing “challenging market conditions.”

As PYMNTS wrote last year, SPAC listings were at one time a very popular way to take companies public. In 2021, the number of SPAC listings exceeded 600.

By the middle of 2023, that tally had “become anemic, especially in commerce and FinTech. PYMNTS reported at the end of last year that, depending on the vertical, listings were in the single digits. The preferred way of coming to market — at least during the pandemic — now seems more like a relic of yesteryear.”

One notable exception is Trump Media, operator of the former president’s Truth Social platform, which went public via a SPAC merger last month. That company’s stock jumped to almost $80 on its first day of trading, but had fallen to $25 as of Tuesday morning.

In other banking news, PYMNTS’ Karen Webster earlier this week discussed recent PYMNTS Intelligence/PSCU research into banking trends, focused on what specific data point.

“What Gen Z wants from a bank is what almost everyone now wants from their bank: personalized products and services that are easier to consume on their mobile devices,” she wrote. “But for Gen Z, using their phones to open accounts, pay bills, send money to family and friends, get financial advice, apply for credit including BNPL, invest and save money — aren’t just nice to have. They are a requirement.”

At the very least, these products and services must be available on the phone, on demand, and without needing to switch between apps and screens to access them.

“Gen Z wants this easy and seamless access to banking and payments services because they are active consumers of banking and payments products — five on average, according to the research,” she added. “And they’d use twice as many, if offered and available.”