The founder of Revolut is to cash in part of his multibillion dollar stake in the company as part of a $500m (£391m) share sale.
Sky News reports that Nik Storonsky, Revolut’s CEO, plans to sell stock worth tens or even hundreds of millions soon. #RevolutFounderCashIn This secondary deal marks a significant move for Storonsky and Revolut’s financial strategy.
City sources indicated that the size of his disposal hinges on Revolut’s valuation from new investors. Final allocation decisions involve Morgan Stanley and Revolut.
The exact size of Mr Storonsky’s stake is unclear although at the $40bn (£31bn) valuation that Revolut hopes to attract, it would be worth several billion dollars.
Last month, Sky News disclosed that Revolut had enlisted Morgan Stanley for a secondary share sale. The sale aims to maintain or exceed Revolut’s $33 billion (£26 billion) valuation from its 2021 primary funding round. #RevolutFounderCashIn
Despite not intending to raise new capital, Revolut’s share sale, given its size and reach, will draw global fintech interest. With over 40 million customers, Revolut’s strategic moves are influential in the industry.
It is expected to be restricted to company employees.
Last week, Revolut revealed record earnings of £438m last year on revenues which nearly doubled to £1.8bn.
Founded in 2015, it has experienced a string of regulatory and compliance challenges, with reports last year highlighting its release of funds from accounts flagged by the National Crime Agency as suspicious.
As Revolut founder cash in on the share sale, the transaction also signals confidence in the company’s future prospects.
