Payment-Tech Company Adyen Soars in European Market Debut

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Pieter van der Does, CEO of Adyen. Shares of Adyen nearly doubled in their first day of trading.

Pieter van der Does, CEO of Adyen. Shares of Adyen nearly doubled in their first day of trading.


Photo:

Ore Huiying/Bloomberg News

Shares in Dutch payment-technology company Adyen NV surged Wednesday in their first day of trading on the Amsterdam

Euronext

exchange.

Adyen’s stock closed up 90% to €455 from its initial offering price of €240, which was already at the high end of its expected price range. The near doubling of the stock was the largest first-day increase since 2000 for a European-listed IPO that raised more than €500 million, according to Dealogic.

The closing price gave Adyen a valuation of €13.4 billion ($15.8 billion), compared with the €7.1 billion valuation derived from its IPO price. Adyen is the largest technology IPO in Europe this year, and one of the largest tech companies to go public in the Amsterdam exchange, according to Dealogic.

Adyen’s software allows tech giants like

Netflix
Inc.

and

Spotify Technology
SA

and retailers like Tory Burch and Sephora to accept payments both online and offline in dozens of countries and currencies through a single platform. Many investors see Adyen as a way to indirectly reach high-growth companies such as Uber Inc., Casper Inc. and Grab Inc.

The initial offering of 3.5 million shares, or a 12% stake, by existing shareholders raised roughly EUR849 million, excluding an allotment for underwriters.

In 2017, Adyen generated earnings before interest, tax, depreciation, and amortization of EUR99 million, and net revenue of EUR218 million.

The surge in Adyen’s share price in its first day reflects investor interest in tech IPOs in recent months. Adyen is also primed to join several U.S. listed companies including

DocuSign
Inc.

and

Dropbox
Inc.

this year that have seen strong gains in their trading debuts. This year, there have been at least 115 tech companies globally that went public, up 72% from this time last year, according to Dealogic.

Many private companies had been hesitant to go public after several unsuccessful IPOs from companies such as

LendingClub
Corp.

and

On Deck Capital
Inc.

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