Network Int’l picks banks for float

london — The owners of Network International are working with investment banks Evercore and Citi on an initial public offering of the largest payment processing firm across the Middle East and Africa, sources said.

The Dubai-based company is jointly owned by Dubai’s largest bank Emirates NBD and private equity firms Warburg Pincus and General Atlantic.

One of the sources said the IPO would be a dual listing in London and Dubai or a single listing in either location but that a decision on the listing venue has not been made.

Africa and the Middle East contain the world’s fastest growing populations with an emerging middle class and a large youth population.

Payments processing assets have been highly sought-after in recent years as consumers worldwide switch to digital from cash, commanding impressive valuations and often achieving high returns for investors.

In June, payments processor Adyen, which handles the payments backend for Netflix, Facebook and eBay, doubled in its market debut, prompting criticism that bankers under-priced the stock.

According to Thomson Reuters data, Adyen is now trading at a next 12 months enterprise value to earnings before interest, tax, depreciation and amortisation (EBITDA) multiple of 86 times while its peers trade at around 16 times.

Network International was established as a subsidiary of NBD in 1994. Middle East-focused private equity firm Abraaj acquired a 49 per cent stake in 2011.

Network International has grown its revenue outside its UAE base in the wider Africa and Middle East region since Warburg Pincus and General Atlantic bought a 49 per cent stake in 2015.