Revolut recently opened a tender offer allowing it to repurchase up to 10% of its shares from eligible investors, according to sources cited by Bloomberg. The buyback prioritizes early backers and values the company at $45 billion, or $865.42 per share.

Share Buyback and Secondary Sale

Revolut is turning to private share deals to provide liquidity to employees and investors while keeping its plans to go public on hold. The fintech has launched a buyback program and a secondary share sale.

Separately, the company began a secondary sale this week that permits employees to sell up to 20% of their holdings to new and existing investors. In that deal, shares were priced at $1,381.06 each, implying a $75 billion valuation.

Revolut has also held discussions with Greenoaks Capital about raising around $1 billion in fresh funding at a blended valuation of $65 billion, people familiar with the talks said. Executives are considering whether to expand the round and raise additional capital.

New funds are expected to support the company’s international expansion, including possible plans to seek a full US banking license or acquire a licensed bank.

The use of secondary share sales has grown among large private firms as IPO activity remains limited in the US and Europe. Stripe has regularly conducted such deals, and in February, it valued itself at $91.5 billion through a secondary sale.

OpenAI also used a similar structure, selling stock at a $500 billion valuation while raising funds at lower levels.

Shareholder Control

Revolut made its tender offer available to investors, including Balderton Capital, Index Ventures, DST Global, Ribbit Capital, and Crowdcube. The company has sought to restrict unapproved share sales on outside platforms.

Crowdcube has facilitated more than £40 million in secondary deals over the past 18 months, including Revolut transactions. In 2023, it said some early Revolut investors earned returns of more than £1 million.

Revolut reported $4 billion in revenue last year, a 72% increase, and posted a profit. The company now has more than 60 million customers worldwide.

Founder and CEO Nik Storonsky’s net worth nearly doubled to $14 billion following the secondary share sale, according to the Bloomberg Billionaires Index.

Expect ongoing updates as this story evolves.

Source: Finance Magnates