Revolut recently opened a tender offer allowing it to
repurchase up to 10% of its shares from eligible investors, according to
sources cited by Bloomberg. The buyback prioritizes early backers and values the
company at $45 billion, or $865.42 per share.
Share Buyback and Secondary Sale
Revolut is turning to private share deals to provide
liquidity to employees and investors while keeping its plans to go public on
hold. The fintech has launched a buyback program and a secondary share sale.
Revolut has also held discussions with Greenoaks
Capital about raising around $1 billion in fresh funding at a blended valuation
of $65 billion, people familiar with the talks said. Executives are considering
whether to expand the round and raise additional capital.
New funds are expected to support the company’s
international expansion, including possible plans to seek a full US banking license or acquire a licensed bank.
The use of secondary share sales has grown among large
private firms as IPO activity remains limited in the US and Europe. Stripe has
regularly conducted such deals, and in February, it valued itself at $91.5 billion
through a secondary sale.
OpenAI also used a similar structure, selling stock at
a $500 billion valuation while raising funds at lower levels.
Shareholder Control
Revolut made its tender offer available to investors, including Balderton Capital, Index Ventures, DST Global, Ribbit Capital, and
Crowdcube. The company has sought to restrict unapproved share sales on outside
platforms.
Crowdcube has facilitated more than £40 million in
secondary deals over the past 18 months, including Revolut transactions. In
2023, it said some early Revolut investors earned returns of more than £1
million.
Revolut reported $4 billion in revenue last year, a
72% increase, and posted a profit. The company now has more than 60 million
customers worldwide.
According to the Bloomberg Billionaires Index, founder and CEO Nik Storonsky’s net worth nearly doubled to $14 billion following the secondary share sale.
Besides the share buyback, Revolut has reportedly
given its employees the option to sell shares at a $75 billion valuation. The
secondary share sale values each share at $1,381.06, according to an internal
memo seen by Bloomberg, and allows staff to offload up to 20% of their
holdings.
Read more: Revolut Hits $75 Billion Valuation as Staff Cash Out Big
The transaction has already drawn interest from both
new and existing investors. The valuation surpasses the market capitalization
of traditional lender Barclays, though the comparison reflects private versus
public market pricing.
“As part of our commitment to our employees, we
regularly provide opportunities for them to gain liquidity,” a Revolut
spokesperson said. “An employee secondary share sale is currently in process,
and we won’t be commenting further until it is complete.”
Revolut recently opened a tender offer allowing it to
repurchase up to 10% of its shares from eligible investors, according to
sources cited by Bloomberg. The buyback prioritizes early backers and values the
company at $45 billion, or $865.42 per share.
Share Buyback and Secondary Sale
Revolut is turning to private share deals to provide
liquidity to employees and investors while keeping its plans to go public on
hold. The fintech has launched a buyback program and a secondary share sale.
Revolut has also held discussions with Greenoaks
Capital about raising around $1 billion in fresh funding at a blended valuation
of $65 billion, people familiar with the talks said. Executives are considering
whether to expand the round and raise additional capital.
New funds are expected to support the company’s
international expansion, including possible plans to seek a full US banking license or acquire a licensed bank.
The use of secondary share sales has grown among large
private firms as IPO activity remains limited in the US and Europe. Stripe has
regularly conducted such deals, and in February, it valued itself at $91.5 billion
through a secondary sale.
OpenAI also used a similar structure, selling stock at
a $500 billion valuation while raising funds at lower levels.
Shareholder Control
Revolut made its tender offer available to investors, including Balderton Capital, Index Ventures, DST Global, Ribbit Capital, and
Crowdcube. The company has sought to restrict unapproved share sales on outside
platforms.
Crowdcube has facilitated more than £40 million in
secondary deals over the past 18 months, including Revolut transactions. In
2023, it said some early Revolut investors earned returns of more than £1
million.
Revolut reported $4 billion in revenue last year, a
72% increase, and posted a profit. The company now has more than 60 million
customers worldwide.
According to the Bloomberg Billionaires Index, founder and CEO Nik Storonsky’s net worth nearly doubled to $14 billion following the secondary share sale.
Besides the share buyback, Revolut has reportedly
given its employees the option to sell shares at a $75 billion valuation. The
secondary share sale values each share at $1,381.06, according to an internal
memo seen by Bloomberg, and allows staff to offload up to 20% of their
holdings.
Read more: Revolut Hits $75 Billion Valuation as Staff Cash Out Big
The transaction has already drawn interest from both
new and existing investors. The valuation surpasses the market capitalization
of traditional lender Barclays, though the comparison reflects private versus
public market pricing.
“As part of our commitment to our employees, we
regularly provide opportunities for them to gain liquidity,” a Revolut
spokesperson said. “An employee secondary share sale is currently in process,
and we won’t be commenting further until it is complete.”
