Dutch payments company, Adyen, raised €1.1 billion at €240 per share last night in its initial public offering (IPO). In the morning, the company opened for trading on Amsterdam’s Euronext exchange at €400 a share, skyrocketing 67 percent overnight.
Shares for Adyen closed at €462, equating to a 92 percent jump from its price last night. The market cap rose to over €13.6 billion at current exchange rates. This is a significant increase from Adyen’s valuation last night during its IPO, when shares were €240, implying a market cap of €7.1 billion.
“Having a successful company like Adyen go public gives a pat on the back to other fundamentally disruptive companies that are redoing the financial services infrastructure that’s existed for decades,” says Rohit Kulkarni, the head of research at SharesPost, a dealer and broker company for private company stocks. Financial tech startups have been hesitant to go public in recent years due to credit exposure concerns.
According to Kulkarni, the financial tech sector has the second highest number of unicorns, privately held companies valued at over $1 billion, globally. Some popular companies are Social Finance and Credit Karma.
Adyen has been reducing friction between companies choosing to take payments online, and actually processing the payment. There are usually multiple steps involved and agreements across numerous countries. Adyen essentially takes care of all these steps as a service for users.
“I’m very proud to be building this company with such a great team,” Pieter van der Does, CO, president, and one of Adyen’s co-founders, said in a statement. “This listing will only help us to continue to do what we are doing now: helping our merchants grow and reshaping the payments industry.
Some popular clients that use the payment company include Netflix, Uber, and its latest addition which was picked up earlier this year, eBay, replacing PayPal as its primary payment provider.