Travelex Aims For London Market Listing

April 25, 2014

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Foreign exchange company Travelex is seeking to list on the London stock exchange in May or June this year, two sources familiar with the matter said on Friday, in a deal which one said could value the company at more than GBP£1 billion (USD$1.7 billion).

Travelex, the world's largest foreign exchange specialist, was set up as a bureau de change in 1970s London by entrepreneur Lloyd Dorfman. It now trades in over 80 currencies and more than 50 countries, and is a familiar sight in airports around the world.

Travelex, which was acquired by private equity firm Apax Partners in 2005, said last month that it was considering a stock market flotation.

Last year, the company had earnings before interest, tax, depreciation and amortisation (EBITDA) of GBP£80.1 million. A market capitalisation of GBP£1 billion would imply a multiple of around 12.5 times earnings.

Travelex, which says it makes at least one foreign exchange transaction a second, is also seeking to expand. It spent GBP£24.8 million on a 75 percent stake in a Turkish foreign exchange retailer in March.

Travelex joins several other financial services companies which have opted for London listings of late, seeking to take advantage of firm equity markets and investor interest.