Digital payments processor Stripe has taken its first major step toward a stock market debut by hiring a law firm to help with preparations.
The most valuable private company in Silicon Valley, valued at $95 billion, has sat out this year’s red-hot market for initial public offerings (IPOs) , using private tender offers to allow some of its existing investors and employees to cash out their holdings.
Because of the privacy Stripe has enabled to keep financial details such as revenue and profitability under wraps. Yet this has also deprived it of using its shares as a publicly traded currency to help finance acquisitions and to incentivize employees something even Silicon Valley cannot afford in the day and age.
Stripe has tapped Cleary Gottlieb Steen & Hamilton LLP as a legal adviser on its early-stage listing preparations. There has been no decision on the timing of the stock market debut, and the next step would be the hiring of investment banks later this year, the sources added. The listing would be unlikely to happen this year, two of the sources told us.
Stripe is considering going public through a direct listing, rather than a traditional IPO, because it does not need to raise money, said two of the sources, cautioning that those plans could change.
Brothers Patrick and John Collision formed the company in 2010. Stripe processes hundreds of billions of dollars in transactions every year for millions of businesses worldwide. Its list of clients includes Alphabet’s Google, Uber, Amazon.com, and Zoom Video Communications. Early investors include Elon Musk, Peter Thiel, and Google’s venture capital arm.
Stripe’s breakneck growth could result in it challenging Chinese technology giants Ant Group and Byte Dance, whose valuations are close to $200 billion, for the title of world’s most valuable startup by the time it goes public.
In short, I believe Stripe is a Green stock and when that IPO initially does come out for the public to invest it’ll probably be a hit. So make sure you prepare and move quick because it may be in the beginning stage right now, but when it finally does come out almost every investor from the average college investor to the top 1% on wall street will be in this stock