Tags: vantiv | credit card | ipo

Payment Processor Vantiv Jumps 15% in Market Debut

Thursday, 22 March 2012 05:10 PM

Shares of Vantiv Inc gained nearly 15 percent in their market debut on Thursday, as investors bet on the growth of the U.S. consumer credit card market.

Shares of the payment processor closed up 14.7 percent at $19.50 on the New York Stock Exchange. They opened at $19, compared with their $17 initial public offering price.

Cincinnati, Ohio-based Vantiv sold 29.4 million shares at the midpoint of its expected range in its IPO, raising $500 million.

Private equity firm Advent International owns a 51 percent stake in Vantiv, while Fifth Third holds a 49 percent stake. The company helps merchants and banks process credit and debit card transactions.

Vantiv generates revenue from transaction fees paid by merchants or financial institutions every time it processes a credit or debit card. While the majority of Vantiv's customers are in every-day spend categories like groceries and pharmacies, the company is looking to expand into new verticals.

"We're focusing on business-to-business and we're continuing to grab share in quick-service restaurants," CEO Charles Drucker said in an interview.

In 2011, Vantiv's revenue grew 40 percent to $1.6 billion. Profit increased to $84.8 million from $54.9 million the year before.

Vantiv's IPO underwriters include J.P. Morgan Chase & Co., Morgan Stanley, Credit Suisse, Goldman Sachs and Deutsche Bank.

© 2018 Thomson/Reuters. All rights reserved.

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Thursday, 22 March 2012 05:10 PM
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