It hasn’t really released any earth-shattering (or financial) news since going public in a $126 million IPO at the end of March, but stock market investors seem to finally be warming up to PSP (payments service provider) company SafeCharge. SafeCharge is an important services provider to companies in the Forex, Binary and iGaming industries, helping those companies securely receive deposits from clients – the key lifeblood of many of these companies.
As the chart above shows (Source: Google Finance), SafeCharge did not experience an ‘IPO pop’ in its shares after going public, which many newly public companies receive, but saw its stock move fairly horizontally for the better part of three months. About two weeks ago, SafeCharge stock started to march upward, hitting £1.93 last Friday – up more than 3% on the day, and 19% from its £1.62 IPO price.
SafeCharge is controlled by online gaming software magnate Teddy Sagi of Playtech fame, with JP Morgan holding about 7% and Henderson Global Investors holding 5%.
SafeCharge did $43 million in Revenues and EBITDA of $11 million in 2013, and as at the time of its IPO the outlook was for Revenues of $61M and EBITDA of $18M in 2014. With its valuation now approaching $500 million, SafeCharge is trading at about 6x forecast 2014 Revenues and 61x EBITDA: