Shift4 Files for IPO

The company was for sale last year but filed confidentially for an IPO in December.

Payment processing company Shift4 Payments filed to raise a combined $400 million in an initial public offering and a concurrent private placement.

The company is looking to sell 15 million Class A shares it expects will price between $19 and $21 a share.

Shift4’s chief executive officer, Jared Isaacman, controls an entity called Rook Holdings that has indicated an interest to buyshares of up to $100 million at a price equal to the public offering price.

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At the midpoint of the proposed IPO price range, the company would have an enterprise value of about $2.2 billion.

Shift4 processes payments for some 200,000 customers across the food and beverage, retail, and e-commerce sectors. It reported revenue of $199 million for the first quarter, up 28.6% from last year, for a net loss of $5.2 million. It lost $13.5 million during the same period last year. As of March 31, it had $70.2 million in cash and $833.2 million in total liabilities.

The company was for sale last year but filed confidentially for an IPO in December.

In a regulatory filing, Shift4 said it would use proceeds from the offerings to pay off existing debts up to $285 million, including a second lien term loan facility, revolving credit facility, and a partial repayment of the first-lien credit facility.

Its existing investors include Searchlight Capital, which will own 34% of class B shares and 74% of class C shares after the IPO. Shift4 has raised at least $148 million in previous funding rounds.

In its filing, the company said the COVID-19 pandemic had a material impact on its business as merchants’ transaction volume fell 80%. “As a result, we have experienced a significant decrease in payments volumes, which we expect to continue for the foreseeable future.”

The stock will list on the NYSE under the ticker symbol “FOUR.”