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Travelex aims for London market listing

London, April 26, 2014

British foreign exchange company Travelex is seeking to list on the London stock exchange in May or June this year, two sources familiar with the matter said on Friday, in a deal which one said could value the company at more than 1 billion pounds ($1.7 billion).

Travelex, the world's largest foreign exchange specialist, was set up as a bureau de change in 1970s London by entrepreneur Lloyd Dorfman. It now trades in over 80 currencies and more than 50 countries, and is a familiar sight to travellers in airports around the world.

Travelex, which was acquired by private equity firm Apax Partners in 2005, said last month that it was considering a stock market flotation.

JP Morgan and Goldman Sachs will lead the London listing, one of the sources said.

Last year, the company had earnings before interest, tax, depreciation and amortisation (EBITDA) of 80.1 million pounds. A market capitalisation of 1 billion pounds would imply a multiple of around 12.5 times earnings.

Travelex, which says it makes at least one foreign exchange transaction a second, is also seeking to expand. It spent 24.8 million pounds on a 75 percent stake in a Turkish foreign exchange retailer in March.

Travelex joins several other financial services companies which have opted for London listings of late, seeking to take advantage of firm equity markets and investor interest.

British insurer Saga is planning to announce its intention to float next week, in a debut that could value the company at 3 billion pounds. It follows on the heels of Dutch-domiciled reinsurer Brit Group, which was valued at 960 million pounds in its March listing.

London has proved a popular destination for listings this year, with first quarter volumes reaching their highest since the same period in 2007, according to Thomson Reuters data.

JP Morgan and Goldman Sachs declined to comment. Travelex and Apax were not immediately available to comment. – Reuters

Tags: Foreign Exchange | listing | Travelex |

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