Afterpay explores US listing after business booms
The Melbourne-based fintech is exploring a listing in the US after the country became its top market globally.
It seems like we can’t move without hearing stories of fintechs from around the world prospering thanks to the seismic shift to digital over the past year.
This next tale comes from down under, with buy-now-pay-later (BNPL) platform Afterpay reportedly exploring a US listing thanks to the boom.
Afterpay, which is already listed on the Australian Stock Exchange, revealed it’s gearing up for a listing stateside in its third-quarter results posted earlier this week.
In the company’s quarterly update, it wrote: “Afterpay is currently working with external advisors to explore options for a US listing given the US market is now the largest contributor to our business and is expected to continue to grow strongly.”
“While Afterpay intends to remain an Australian headquartered company, our shareholder base is increasingly becoming more globally focused. A US listing would further accommodate this growing interest.”
Throughout the pandemic, Afterpay’s business in the States grew so rapidly that the US is now its biggest market, eclipsing its native Australia.
The fintech also said that there is currently no timeline in place for its US listing and any listing would be subject to market conditions and approval by the American regulators.
Afterpay’s co-CEO and co-founder Nick Molnar, told Reuters: “The prioritisation on exploring a U.S. listing is purely around ‘does it provide the business more operating leverage from the perspective of being present in the market that is now the greatest contributing segment ... and provide us the right investor base?’"
Afterpay has been listed on the Australian Stock Exchange since May 2016 and has seen its share price more than quadruple in 2020. The fintech started the year with a share price of around A$30 (£16), and, at the time of writing, its shares are sitting at A$125.03 (£69.74).