Trintech, the Dublin-based electronic payments company, is likely to seek a listing on the Nasdaq market in the autumn. Despite initial speculation that it would float this month, Trintech appears to have deferred its plans. The company is on target for the much-anticipated flotation with projected revenues in excess of $25 million (€24.2 million) for 1999. It also raised $20 million in investment capital last year to finance its expected initial public offering (IPO).
"I can make no comment regarding the question of an IPO," Mr John McGuire, who, with his brother Cyril, shares the chief executive officer position in Trintech, told The Irish Times. "All I can say is that we are hitting our targets in the last year, and we have grown our operations in the US, Asia and South America."
In the last few months Trintech has been less bullish about its planned listing following the crash of Iona and CBT stock prices earlier this year. At the time, Mr Cyril McGuire said it would only float when conditions in the market were right.
Some industry analysts believe the listing may even be deferred until early next year.
The summer months are generally viewed as slow months for a flotation as many investors are on holiday, so the company is more likely to make the offering after Labor Day [September 6th] in the US.
Trintech has said it may seek a dual listing on US and European stock exchanges. The traditionally-conservative European investment community may offset the volatile trading which has become so characteristic of the Nasdaq.
Industry sources suggest Trintech will be looking to raise between $30 million and $40 million as part of the flotation. It is likely industry investors will be keen to reduce the McGuire brothers' significant shareholding of more than 70 per cent. Typically, investors are more comfortable with publicly trading more than 50 per cent of a company, as it offers greater stock liquidity. In order to ensure the company founders have an incentive to align their objectives with those of the new shareholders, the McGuire brothers will be subject to initial restrictions on selling their shares.
This week, Trintech made two advances which are likely to heighten its attractiveness as an investment option. It is one of a group of companies behind a new industry standard for a software-based credit card. This will allow customers to purchase products online by simply dragging and dropping an onscreen icon, circumventing the tedious process of furnishing credit card details online.
The company also said it would launch an electronic card product called NetIssuer on Monday, which would be issued distributed to customers through their bank or credit card company.
