Analysis & Comment

Trustly says no timeline for IPO after halt in listing plan

FILE PHOTO: A sign informing that cash payments are not accepted is seen at a cafe in Stockholm, Sweden, December 18, 2019. REUTERS/Colm Fulton/File Photo

STOCKHOLM (Reuters) – Swedish payments firm Trustly said on Monday it has no timeline set for when it will list, after delaying its IPO plans following comments by the country’s financial supervisory authority about the company’s due diligence process.

In April, Trustly announced plans to list on the Nasdaq Stockholm exchange in a move that could have valued the company at over $10 billion.

However, less than two weeks after its announcement the Swedish Financial Supervisory Authority (SFSA) said that the company should perform customer due diligence on some consumers using Trustly’s payment initiation service to make payments to merchants.

“We have a responsibility to all stakeholders to bring clarity and resolve any outstanding questions from the SFSA’s preliminary assessment,” Chairman Johan Tjarnberg said on Monday.

The board has decided not to pursue the plan for a listing in the second quarter, but the ambition to list remains, he said.

Trustly, whose platform allows users to pay for purchases directly through their bank accounts, reported a 46% jump in net revenue to 632 million Swedish crowns ($74.86 million) in the first quarter, backed by growth in North American markets.

($1 = 8.4427 Swedish crowns)

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