£1bn Travelex To Join Stock Market Stampede
The controlling shareholders in the foreign currency provider Travelex have drafted in advisers to pave the way for a £1bn-plus flotation that will see it join a stampede of companies heading for the London stock market.
Sky News understands that Apax Partners, the private equity group which invested in Travelex nearly a decade ago, has signed up Rothschild, the investment bank, to oversee a review of shareholders' options for the business.
The favoured outcome among some investors in the group, which operates more than 1,300 shops around the world, is for an initial public offering of shares on the London Stock Exchange next year.
A number of other banks, including Bank of America Merrill Lynch, Deutsche Bank and JP Morgan, are pitching for roles to handle a public listing, which would crystallise big windfalls for Travelex's shareholders.
Apax is understood to have scheduled a meeting of its investment committee for later this week, after which it is expected to rubber-stamp the appointment of investment bankers.
People close to Apax signalled that an outright sale of Travelex remained an option .
Travelex was founded in 1976 by Lloyd Dorfman, who remains the company's chairman and second-largest shareholder. Mr Dorfman is one of Britain's most successful entrepreneurs, and is thought likely to remain on the board if it decides to pursue a listing.
Travelex has been reshaped since Peter Jackson, its chief executive, was recruited from Lloyds Banking Group in 2010, with the sale of its card management and global payments operations for an aggregate total of nearly £1bn.
Mr Jackson said recently that trading during the crucial summer period had been strong.
A stock market listing for Travelex would probably see it join the FTSE-250 index of the public companies ranked between 101 and 350 by size on the London markets.
On Monday, Merlin Entertainments, the theme park operator, and Infinis, a renewable energy group, became the latest companies to announce flotation plans as the City heads for its busiest year for IPOs in a decade.
Apax and Travelex both declined to comment.