Draper Esprit — Trustpilot IPO priced at £1.08bn

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Research: Financials

Draper Esprit — Trustpilot IPO priced at £1.08bn

Trustpilot has confirmed final pricing for its IPO on the London Stock Exchange with its shares valued at 265p each, implying a market capitalisation at listing of £1.08bn. Trustpilot is Draper Esprit’s largest core portfolio holding, valued at £80.9m on Draper Esprit’s balance sheet at 30 September 2020. At the IPO price, Draper Esprit’s holding in Trustpilot is valued at £163.8m, an uplift of £82.9m or 102%, almost 60p per Draper Esprit share (before carry and other costs). Draper Esprit is selling shares worth £78.3m and will continue to hold a 7.9% stake in Trustpilot (subject to exercise of the overallotment option) worth £85.5m at the listing price. Draper Esprit’s remaining holding will be subject to a 180-day lock-up. Together with UiPath’s funding round (February 2021), Draper Esprit has now reported more than £175m in gross portfolio value uplift in H221.

Richard Williamson

Written by

Richard Williamson

Director, TMT

Financials

Draper Esprit

Trustpilot IPO priced at £1.08bn

Change of directorate

Listed venture capital

23 March 2021

Price

854p

Market cap

£1.19bn

Net cash (£m) at 30 September 2020

62.1

Shares in issue

139.0m

Free float

90%

Code

GROW

Primary exchange

AIM

Secondary exchange

Euronext Growth Dublin

Share price performance

Business description

Draper Esprit is a London-based venture capital firm that invests in the European technology sector. It has a portfolio of c 70 investee companies and includes a range of funds (seed, EIS and VCT) within the group, as well as its flagship balance sheet VC fund.

Analysts

Richard Williamson

+44 (0)20 3077 5700

Dan Ridsdale

+44 (0)20 3077 5700

Draper Esprit is a research client of Edison Investment Research Limited

Trustpilot has confirmed final pricing for its IPO on the London Stock Exchange with its shares valued at 265p each, implying a market capitalisation at listing of £1.08bn. Trustpilot is Draper Esprit’s largest core portfolio holding, valued at £80.9m on Draper Esprit’s balance sheet at 30 September 2020. At the IPO price, Draper Esprit’s holding in Trustpilot is valued at £163.8m, an uplift of £82.9m or 102%, almost 60p per Draper Esprit share (before carry and other costs). Draper Esprit is selling shares worth £78.3m and will continue to hold a 7.9% stake in Trustpilot (subject to exercise of the overallotment option) worth £85.5m at the listing price. Draper Esprit’s remaining holding will be subject to a 180-day lock-up. Together with UiPath’s funding round (February 2021), Draper Esprit has now reported more than £175m in gross portfolio value uplift in H221.

Period
end

plc cash*
(£m)

Gross portfolio value (£m)

NAV
(£m)

NAV/share
(p)

P/NAV
(x)

03/18

56.6

243.5

300.5

416

2.05

03/19

50.4

594.0

618.6

524

1.63

03/20

34.1

702.9

659.6

555

1.54

09/20**

62.1

702.4

714.7

600

1.42

Note: *Includes restricted cash but not funds held on behalf of EIS/VCT investors. **H121 interim results

Trustpilot, founded in Denmark, is a leading online global review platform with a SaaS revenue model. It has collected over 120m reviews on 529,000 internet sites and hosted reviews of businesses located in over 100 countries, submitted by consumers in over 200 countries. It seeks to provide a 'trust layer' for the open commerce ecosystem by giving consumers the confidence to purchase goods and services from a wide range of online and offline businesses across the world.

Draper Esprit first invested in Trustpilot in 2013 and had a shareholding of c 3% when Draper Esprit listed in June 2016. Since then, Draper Esprit has more than tripled its holding through a combination of secondary acquisitions and participation in follow-on rounds, to become one of the largest shareholders pre-IPO. This approach of backing its winners is a core part of Draper Esprit’s model.

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