Payment company SafeCharge to list on London's AIM

LONDON Tue Mar 18, 2014 7:04am GMT

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LONDON (Reuters) - Payment service provider SafeCharge, majority owned by Israeli entrepreneur Teddy Sagi, plans to raise about $100 million by listing shares on London's junior AIM stock exchange, the company said on Tuesday.

SafeCharge handles transactions for European betting companies and also for businesses in the foreign exchange trading sector.

The company is expected to have a market capitalisation of between 210 and 230 million pounds ($349-382 million) after the sale of new shares. It plans to have a free float of at least 25 percent of its capital.

"We're very excited by the prospect of listing in London, which will improve the group's profile amongst prospective clients and should enable us to grow both organically and through acquisitions," Chief Executive David Avgi said in a statement.

Sagi, founder of online gaming technology company Playtech (PTEC.L), is not selling any shares and will retain a diluted stake of about 63 percent after the listing. He recently banked around 326 million pounds by selling part of his Playtech holding.

SafeCharge is one of a growing number of companies in Europe that are selling shares to investors who expect growth as the economy picks up momentum.

SafeCharge had turnover of $43.2 million in 2013 and reported adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) of $11.3 million.

The company employs about 200 people in Britain, Cyprus, Bulgaria, Israel, Germany and Austria.

Shore Capital (SGRS.L) is acting as the broker for the deal.

(Writing by Keith Weir; Editing by Pravin Char)

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