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· Posted on
June 24, 2024

Revolut is looking to sell $500 million of shares, but not quite ready to commit to the public markets

Revolut is looking to sell $500 million of existing shares at a valuation of $40 billion USD.

What's the key learning?

  • While many of the fintechs and neobanks have come and gone - Revolut seems to have stuck.
  • Companies who opt to get listed on the IPO must first evaluate its readiness for the market demand once they go public.
  • Revolut is obviously taking careful steps before they list to ensure that their IPO will go public in a much favourable market conditions.

👉 Background: Revolut is the UK-based neobank or app-only bank that was founded in 2015. It has over 40 million customers globally and operates mainly in the UK, but also Australia, the US, Japan, and Brazil.

👉 What happened: In 2021, Revolut raised capital at a valuation of $33 billion USD. Now, it's going one step above and is looking to sell $500 million of existing shares at a valuation of $40 billion USD.

👉 What else: This is all before an eventual IPO, which Revolut keeps delaying until the public markets in Europe are a little rosier.

What's the key learning?

💡When a company decides to go public, timing the IPO can significantly impact its success.

💡Nobody wants a lacklustre IPO because it can hurt a company's image and making future fundraises more challenging. Just ask Deliveroo - who's shares dropped 26% on the first day of listing.

💡In fact, the fear of a lacklustre IPO can cause companies to change plans rapidly. Just last week, two European companies postponed their IPO plans because of the market conditions:

  • Golden Goose - an Italian luxury sneaker company that sells expensive dirty shoes
  • Tendam - the Spanish fashion retailer

Similarly, Revolut's going to kick the can down the road for a little bit longer and wait for the market to bounce back.

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