Cuscal Limited, a comprehensive payments platform co-owned by MasterCard, Bendigo and Adelaide Bank and several large credit unions, is initiating meetings with fund managers as it prepares to list on the ASX.
Cuscal is targeting a $300 million initial public offering (IPO) for an indicative market capitalisation of around $500 million. Bank of America (NYSE:BAC), the sole lead manager, began sending invitations for a global non-deal roadshow earlier this week.
Founded in 1990, Cuscal serves as a business-to-business payment infrastructure provider, offering services to banks, credit unions and fintechs.
It is the sole end-to-end platform in this sector with broad connectivity across the Australian payments landscape.
Last year, the company began restructuring its share register in anticipation of the IPO, sparking concerns among smaller shareholders over potential dilution.
Financially, Cuscal reported revenues of $182 million for the last fiscal year and a net profit after tax of $23.4 million. The firm has enjoyed a compound annual growth rate of 12% in net profit over the past decade.
In March, Cuscal acquired Sydney-based start-up Basiq, which is backed by Westpac and National Australia Bank, a move that positions Cuscal among other IPO aspirants such as freight forwarder Mondiale VGL and wealth group Mason Stevens.
With early-stage non-deal roadshow meetings taking place between May and July, Cuscal is gaining momentum as it moves towards its year-end listing.