Collison brothers’ stripe takes first step towards stock market listing
Digital payments giant Stripe, one of the world’s largest private companies, has hired a law firm to help it prepare for a stock market listing, according to reports.
The company, which was valued at $ 95 billion (â¬ 80 billion) in a fundraiser earlier this year, has hired New York-based Cleary Gottlieb Steen & Hamilton LLP as the legal counsel for its early-stage listing preparations, according to Reuters.
Stripe is reportedly considering a direct listing rather than an initial public offering, meaning the company would not raise new capital.
However, a direct listing would protect shareholders – especially founders, Limerick-born brothers John and Patrick Collison – from having to dilute their holdings.
Fintech Wise was successfully listed on the London Stock Exchange in what many commentators saw as a test for companies going public without underwriters.
The Collisons have repeatedly played down the prospect of going public, citing Stripe’s low capital intensity and ease of securing private lines of finance.
The Reuters report, which cited anonymous sources, said there had been no decision on when to go public.
He added that the next step would be the hiring of investment banks later in 2021, according to the sources.
However, a listing is unlikely to happen this year, two of the sources told Reuters.
The sources requested anonymity because the deliberations are confidential. Stripe and Cleary Gottlieb declined to comment.
In March, Stripe said it would create “at least” 1,000 jobs in Dublin over the next five years after the Ireland Strategic Investment Fund (Isif) invested â¬ 42 million in the company.
The online payments company, founded by the Collison brothers of Limerick, is now Silicon Valley’s most valuable private tech company as a result of this round of funding.
Stripe currently employs over 300 people at its Dublin Engineering Center, which also serves as the company’s international headquarters.
Stripe processes payments in 42 countries, counting customers such as Deliveroo, N26, Intercom, and Donedeal among its thousands of customers.
Patrick and John Collison have a combined net wealth of 16 billion euros, according to Forbes estimates, nearly double the wealth of the other four Irish billionaires on the combined list.
Last month John Collison bought the Abbey Leix estate in County Laois, one of Ireland’s largest and most prestigious estates.
The giant estate, adjacent to the town of Abbeyleix, has been marketed for two years with co-agents Sotheby’s and Colliers International citing a price of 20 million euros.