Travelex set for a £1bn flotation
Foreign-exchange specialist the latest company to join queue for London Stock Exchange listing
Travelex has joined the rush to float on the buoyant London Stock Exchange, as the world's biggest foreign-exchange specialists eyes a share sale that would value the business at more than £1bn.
As Royal Mail shares soared on their stock-market debut on Friday, Travelex is looking to join a multitude of companies hungry to take advantage of the best conditions for a flotation since the onset of the financial crisis. Others in the line include Madame Tussauds-owner Merlin and old-age insurance specialist Saga.
This revives talk of a flotation from 2010 and comes several months after owner Apax was approached by a potential buyer, thought to have been from Asia.
A source close to the private-equity giant and Travelex said: "Apax has been in the business since 2005, and while the public markets are very strong, Travelex has to consider its options. There's a lot of preparatory work to do and there's a bit of a queue, so a flotation would be in 2014."
A banking source added he was waiting to be called to a beauty parade to decide on who the advisers will be, which is expected shortly.
He said: "This is the first real feeling for four or five years that there is a real queue of companies of good reputation and, crucially, good name recognition."
The banker added that the group's chairman, Lloyd Dorfman, who founded Travelex 37 years ago from a bureau de change in central London, would have had his interest "piqued" by the number of retail investors who have snapped up shares in Royal Mail.
He added: "Dorfman might look at a retail tranche given that everyone who has been to an airport has heard of Travelex."
Travelex now has 1,300 stores and 1,100 cash machines, trading more than 80 currencies around the world.
However, the group has not been without its troubles in recent years, as it had to sell its business payments operation, TGBP, to Western Union, to help pay-off a debt that reached £641m in 2010.
The company's revenue was £630.4m in 2012, up 8 per cent on the previous 12 months.
The key profit measure – earnings before interest, tax, depreciation and amortisation – was £70.3m, an increase of 12 per cent.
Last month, chief executive Peter Jackson said that there was "strong trading across the busy July and August summer holiday period", sparking speculation that Travelex could be ready to float.
- 1 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 2 Nick Kyrgios calls former Olympian Dawn Fraser a 'blatant racist' after she tells Wimbledon star to 'go back where their parents came from'
- 3 World learns of app that shows you who unfriended you on Facebook, app promptly crashes
- 4 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
- 5 The Greece debt crisis explained in less than 100 words
Florida man sentenced to two-and-a-half years for having sex on the beach in front of a child
Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
Tube strike July 2015: Is it still on? Everything you need to know about the industrial action
Eiji Tsuburaya: Godzilla co-creator honoured in today's interactive Google Doodle
Florida teacher sentenced to 22 years in prison for sexually abusing three pupils
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...