Australia's Tyro set to raise $195 mln in IPO as book build opens early -sources

Australia's TYRO Payments Ltd is set to raise as much as A$287.1 million ($194.83 million) in an IPO, which has been accelerated due to strong demand following an investor roadshow last week, said two people with direct knowledge of the deal.

By Scott Murdoch

HONG KONG, Dec 2 (Reuters) - Australia's TYRO Payments Ltd is set to raise as much as A$287.1 million ($194.83 million) in an IPO, which has been accelerated due to strong demand following an investor roadshow last week, said two people with direct knowledge of the deal.

A book message sent to investors, seen by Reuters, showed the firm - which provides electronic funds transfer at point of sale (EFTPOS) terminals - would sell 104.5 million to 109.1 million shares at an indicative range of A$2.50 to A$2.75 each, and that the book build started at noon Sydney time on Monday rather than Tuesday.

Prospective investors in the initial public offering (IPO) have been told the book was already covered at the top of the price range, the message showed.

Based on the price range, Tyro will have a market capitalisation of A$1.25 billion to A$1.36 billion.

"Demand for the offer has continued to build and the aggregate of the cornerstone allocations, excess cornerstone demand and additional orders received from institutional investors now exceeds the total maximum offer size through to the top of the pricing range," showed an earlier book message sent to investors late on Friday.

The IPO consists of 45.5 million to 50.1 million primary shares and 58.9 million secondary shares sold by the company's existing shareholders.

A term sheet sent to prospective investors on Monday, seen by Reuters, showed that U.S. investment fund Tiger Global will sell 26.43 million shares, former Tyro Chief Executive Jost Stollman will offload 15.98 million shares and non-executive director David Fite will sell 4 million shares. A separate group of shareholders will sell 12.5 million shares.

After the IPO, Tyro's major shareholders will be Atlassian Corp PLC TEAM.O co-founder Mike Cannon-Brookes who will hold 13.69%, and Australian investment firm TDM Growth Partners at 13.26%. Neither of the two investors are selling stock in the IPO.

The timing of the IPO was bought forward a day and the books will now close at midday, Sydney time, on Tuesday.

The price is likely to be officially finalised tomorrow, but the people with knowledge of the matter said it could be set earlier.

The term sheet showed that cornerstone investors have subscribed for $A140 million worth of Tyro stock.

($1 = 1.4736 Australian dollars)

(Reporting by Scott Murdoch and Byron Kaye; Editing by Kim Coghill and Christopher Cushing)

((byron.kaye@thomsonreuters.com; +612 9321 8164; @byronkaye;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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