Money-Transfer Firm Zepz Said to Seek $6 Billion Value in IPO

(Bloomberg) -- Zepz is considering seeking an initial public offering in the U.S. at a valuation of about $6 billion, a potential blow to U.K. attempts to attract more tech listings, according to people familiar with the matter.

The London-based money-transfer firm, formerly known as WorldRemit Group, could list in New York as soon as the second quarter, the people said, asking not to be identified discussing confidential information. Goldman Sachs Group Inc., JPMorgan Chase & Co. and Barclays Plc are advising on the listing, the people said.

Deliberations are ongoing and no final decisions on the size or timing of any IPO have been made, according to the people. Representatives for Barclays, Goldman Sachs and JPMorgan declined to comment, while a spokesperson for Zepz didn't respond to requests for comment.

Zepz is a cross-border digital payments service created in 2010 by Ismail Ahmed, who was frustrated by the high transaction fees he was being charged to send money to his family in east Africa. It processed 50 million customer transactions in 2020, according to its website.

The company raised $292 million in a funding round in August that valued it at $5 billion. Bloomberg reported at the time that the company was raising the money ahead of a possible IPO in 2022.

The U.K. is taking steps to attract more tech companies to London, having seen many so-called unicorns opt to list in New York. Rules are being re-written to allow founders to retain greater ownership of their firms even after going public, opening up new visa routes for talented individuals, and extending tax credits for research and development.

Still, British tech startups including electric-vehicle manufacturer Arrival SA, online health firm Babylon Holdings Ltd. and used car dealer Cazoo Group Ltd. have been wooed to list in the U.S. via special purpose acquisition companies, which have yet to take root in London.