Europe's biggest IPO this year just started trading -Italy's Nexi is a rare $6.4 billion bright spot amid regional slump
- Shares in Nexi, Italy's biggest payment-services group, began trading on Tuesday.
- Nexi raised just over €2 billion euros ($2.3 billion) and secured a market valuation of about €5.7 billion when it listed last week, marking Europe's biggest IPO so far this year.
- The Milan-based group's public debut follows two other major listings in its sector in the past year, Network International and Adyen NV.
Shares in Nexi began trading on Tuesday, after Italy's biggest payment-services group last week raised just over €2 billion euros ($2.3 billion) and secured a market valuation of about €5.7 billion when it listed last week, marking Europe's biggest IPO so far this year.
While it's down 6% in Milan trading, it's a rare positive sign for European listings. Brexit worries and a market rough patch in 2018 saw many IPO plans shelved or scrapped altogether.
The Milan-based group- which issues credit cards, manages cash machines, and provides digital solutions - priced its shares at €9, giving it a value of €7.3 billion including debt, according to Bloomberg. It raised capital of €700 million, which it has earmarked to pay down its debt of €1.7 billion.
Nexi has partnerships with around 150 Italian banks and commands a market share of 60% in card issuing, according to Bloomberg.
Its public introduction follows the billion-dollar debuts of two other European payment processors in the past year - Network International in London earlier this month, and Adyen NV in Amsterdam last June.
Unlike some big-name US IPOs lately, Nexi makes a profit. reported operating revenue of €931 million in 2018, generating net income of €20 million.