Payoneer IPO after online payment company merges with SPAC

 

On Monday, Payoneer listed at the Nasdaq Stock Exchange in New York. The online payment provider had recently closed a merger with a special purposes acquisition group or SPAC backed by Betsy Cohen who is a fintech entrepreneur and founder of The Bancorp. The company’s shares are trading under PAYO.O after it went public. Early gains decreased by the mid-morning session.

 

Payoneer was founded in 2005 and its core management team is based in Israel. It offers e-commerce solutions to both individual and companies. It has a few major online sellers including Amazon and ABNB as its customers. The pandemic accelerated the growth of all e-commerce players in the market, one among these bullish ones is Payoneer.

 

The firm’s forecasts are ambitious due to its current growth. According to a report from Reuters, it expects to earn $432 in revenues in year 2021 when compared with $94.7 in 2020. It is also looking at a higher process transaction volume amounting to $64 billion, a leap forward from its $44.4 billion in 2020.

 

Scott Galit, the CEO of Payoneer told Reuters that the firm is able to make bolder investments and increase their acquisitions with the public money the company has gained. Galit also said that the company would move ahead faster and achieve bigger things while servicing more customers in several places around the world.

 

The company went public four months it announced its plan to merge with blanket cheque firm FTAC Olympus Acquisition Corp in a deal that has a value of about $3.3 billion. On June 23, FTAC’s shareholders approved the deal.

 

The company should have cash of about $563 million. This would include private investment in public equity of PIPE from investors. The investors are

 

  • Wellington Management
  • Dragoneer Investment Group
  • Fidelity Management and Research Company

 

Betsy Cohen, the founder of The Bancorp, had raised $750 million in the IPO of FTAC Olympus, which one in a series of SPACs launched by her. After the successful IPO of Payoneer, the veteran dealer in the SPAC community is planning another public offering, this time around it would be eToro, an Israeli online stock brokerage company with a value of $10.4 billion.


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