SumUp Advisers Said to Guide Away From US as Possible IPO Venue
TL;DR
SumUp's advisers recommend a European IPO over a US listing, citing its sales distribution. The company is considering this advice, with some management preferring New York, but no decision has been made yet.
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Firms advising European financial technology company SumUp Payments Ltd. recommended it holds an initial public offering locally instead of in the US, according to people familiar with the matter.
The payments company, known for its point of sale terminal in Europe, recently invited advisers to provide feedback on venues for a potential initial public offering, the people said, asking not to be named as the information is private.
The advisers largely urged the company to choose a European venue like London or Frankfurt due to its proportion of sales in the US, they said. SumUp’s management are now considering the advice, but no decision has been made, they said.
“We are continuously evaluating a range of strategic options to support SumUp’s continuing growth,” a representative for SumUp said in an emailed statement, declining to comment on individual details. “While an IPO is one possible path we are exploring, IPO readiness is an ongoing process and no decisions have been made.”
The advice goes against a trend of Europe’s fast growing companies seeking public listings in the US. EMEA-based fintechs like Klarna Group Plc and Etoro Group Ltd. both held IPOs in New York earlier this year, but their shares have slumped in the months that followed.
Some of SumUp’s management preferred a New York debut, the people said. At least one adviser suggested having a secondary listing in New York but maintaining the primary in Europe, they added.
The fintech firm was valued at $8.5 billion in a funding round in 2023. Earlier this month SumUp’s Chief Commercial Officer and UK Chief Executive Officer Luke Griffiths said the company has not yet set a timeline for an IPO and is still weighing up listing venues.