Woori BMO Group Says Vantiv IPO Sees Company Value Of $3.6 Billion

Press Release

9 March, 2012 /Woori BMO Group/ According to executive wealth managers at Woori BMO Group, the payment processing company, Vantiv Inc said on Thursday it expects to raise about $461 million from its initial public offering, potentially valuing the company at around $3.6 billion in what is still an uncertain IPO market.

Despite hopes from social networking giant Facebook’s blowout listing, other companies have faced investors who have been holding onto their purse strings.

Nationstar Mortgage NSM.N on Wednesday has priced its IPO way below the planned price. Drug development company Argos Therapeutics pulled off its offering earlier this week, citing market conditions.

Director of EMEA Wealth Management at Woori BMO Group, Christian Harper, said: “In its filing with the U.S. Securities and Exchange Commission, Ohio-based Vantiv confirmed it expects to sell around 29.4 million Class A common shares, for between $16 and $18 per share.”

“Vantiv also has around 86 million outstanding Class B shares which are included in the company’s market valuation,” he added. 

In November, Vantiv, owned by Fifth Third Bancorp (FITB.O) and Advent International, a buyout company, filed for selling up to $ 100 million in Class A common stock at an IPO.

“I think it’s attractively valued in the range, as it shows good revenue growth,” said Josef Schuster, founder of IPO investment firm IPOX Schuster, based in Chicago.

“I think there’s going to be high demand for that kind of deal.”

The company’s revenue grew from the previous year by nearly 40 per cent to $1.62 billion in 2011.

Eleven investment banks reinforce the IPO, led by JPMorgan, Morgan Stanley, Credit Suisse, Goldman Sachs & Co, and Deutsche Bank Securities.

Formerly known as Fifth Third Processing Solutions, Vantiv competes with Global Payments Inc (GPN.N), Total System Services TSS.N, First Data, Bank of America Merchant Services, and Chase Paymentech Solutions.

“Vantiv operated as a Fifth Third unit until June 2009, when certain funds managed by Advent International purchased a majority stake in the 40-year-old company, which was a deal valuing it at $2.35 billion at the time,” said Andrew Williams, Woori BMO Group’s Director of Institutional Equity. 

Vantiv, who plans to be listed on the New York Stock Exchange under the ‘VNTV’ symbol, said that his merchant base includes 9 of the top 25 national retailers and more than 200,000 small and medium-sized merchants.