Australian company Afterpay, which buys now pays later, weighs in on the U.S. stock price

Australian Buy-now-pay-later company Afterpay said Tuesday it is exploring a quote in the United States after North America became its largest market, offering global investors an easier way to own a home. ‘an action that has grown through the pandemic.

Afterpay has taken advantage of Goldman Sachs to advise on the list, two sources with direct knowledge of the matter told Reuters. Goldman declined to comment.

The Melbourne-based firm was last valued at nearly A $ 37 billion ($ 28.7 billion), although it has never made a profit, thanks to increased coronavirus-driven online shopping and the rapid expansion into overseas markets, including the United States.

Released Tuesday’s third-quarter results, Afterpay said sales in North America had nearly tripled, surpassing Australia and helping to double the total value of transactions it processed to $ 5 billion compared to previous year.

A listing in the U.S. would likely further open the Australian fintech star to an investor base that would give more weight to growth and also provide easier access to capital to fund expansion plans.

Afterpay co-CEO Nick Molnar, who co-founded the company in 2015, told Reuters it was a “proud Australian-based organization” but that a listing in the US could provide “attractive opportunities”.

“Prioritizing the exploration of a quote in the United States is purely approximate if it provides the business with greater operational leverage from the perspective of being present in the market which is now the segment that contributes the most … and provides us with the adequate investor base, ”he said.

Afterpay said in a statement that it planned to remain headquartered in Australia, but did not specify whether a debut in the US market would be based on a double-quoted structure or result in it giving up its berthing in Australia. Nor did he give a deadline.

In North America, Afterpay faces Affirm, Quadpay of Zip Co., new entrant PayPal and Klarna of Sweden, which is worth $ 31 billion and is looking for a direct quote in the United States.

Affirm’s $ 17 billion valuation was based on 4.5 million buyers, while Afterpay had $ 14.6 million, implying a valuation of more than $ 47 billion, said Emanuel Datt, founder of Datt Capital, which bought shares of Afterpay for about $ 7.00 in 2018.

“U.S. investors are generally willing to pay a higher multiple for a growing business like Afterpay. This is related to the deeper capital funds available … relative to Australia,” Datt said.

Afterpay shares were trading at a flat rate of US $ 126.17 per session, compared to a slight decline in the broader market. The stock has risen more than 200% since its pre-pandemic peak in February 2020.

Afterpay’s growth has slowed in Australia and this year is likely to face margin pressure as the country’s largest bank and PayPal launch BNPL deals with the promise of lower commissions.

The company was launched last month in parts of continental Europe and plans to move to Asia. Its own-brand savings accounts linked to Westpac Banking Corp are expected to go live later this year.