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Revolut's Equity Sale Targets $500 Million to Boost Liquidity

Quiver Editor

Revolut, one of Europe’s most valuable startups, has enlisted bankers to assist in selling about $500 million worth of existing equity, joining other private companies seeking alternative liquidity options as the IPO market remains sluggish. Working with Morgan Stanley (MS), the sale aims to provide cash for existing staffers and early investors, potentially valuing Revolut at over $40 billion, up from its $33 billion valuation in 2021.

The challenger bank has struggled for years to secure a UK banking license to expand its services. Despite this, new customers have flocked to its app, with revenue for 2022 jumping 45% to £922.5 million ($1.17 billion). While it hasn’t reported 2023 results, Revolut previously forecasted revenue of around £2 billion.

Market Overview:
  • Revolut hires Morgan Stanley to sell $500 million worth of equity.
  • Potential valuation of Revolut exceeds $40 billion.
  • Revenue for 2022 increased by 45% to £922.5 million.
Key Points:
  • Revolut has struggled to secure a UK banking license.
  • Schroders values Revolut at about $25.7 billion.
  • Revolut prepares for a potential IPO amid dormant equity markets.
Looking Ahead:
  • Revolut's 2023 revenue expected to be around £2 billion.
  • Equity sale aims to provide liquidity for early investors and employees.
  • Potential IPO plans remain contingent on market conditions.

The share sale follows Schroders, a Revolut shareholder, indicating the firm should be valued at about $25.7 billion. Revolut has stated its intention to go public but faces challenges due to dormant equity capital markets, creating liquidity issues for early investors and employees.

Stripe, another prominent fintech, raised about $6.5 billion last year through a transaction that allowed staffers to sell some of their shares, highlighting a similar trend among high-valued private companies seeking alternative liquidity solutions.

About the Author

David Love is an editor at Quiver Quantitative, with a focus on global markets and breaking news. Prior to joining Quiver, David was the CEO of Winter Haven Capital.

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