Remittance processor Remitly targets nearly $7 billion valuation in U.S. IPO

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A man shows the Remitly app he uses to send money to his family in Mexico in this photo taken on March 30, 2016 in San Francisco, California. Businesshala/Beck Dieffenbach
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(Businesshala) – Remittance processor Remitly Inc. is targeting a valuation of about $7 billion in its US initial public offering (IPO), a regulatory filing showed on Tuesday.

In May, the company hired investment banks to prepare for an IPO this year, which could be valued at around $5 billion, Businesshala reported here, citing people familiar with the matter.

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Founded in 2011, Remitly is a cross-border remittance provider for customers who are primarily non-residents.

The filing shows that Remitly plans to raise about $510.8 million by selling more than 12.16 million shares for between $38 per share and $42 per share.

Current shareholders are selling approximately 5.2 million shares in the offering and the proceeds will not go to the company.

Separately, PayU Fintech Investments BV, one of Remitly’s existing shareholders, has agreed to purchase $25 million worth of the company’s common stock in a private placement.

Goldman Sachs and JPMorgan are the principal underwriters of the offering, and Remitly plans to list on the Nasdaq under the symbol “RELY”.

Reporting by Sohini Poddar in Bengaluru; Editing by Amy Karen Daniels

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