Photo of Mangit Balgir, Bank of America, Freya Smith and Craig Kennedy, Cuscal Limited.
Freya Smith
Chief Legal and People Officer
Cuscal Limited is an Australian company and independent provider of payment and regulated data solutions for the Australian financial services sector. Having originally been formed in 1966 to service Australia’s mutual banking sector, Cuscal has focused on innovation and investment to expand its capabilities to become a leading player in Australian payments.
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The challenge
As one of Australia’s largest independent payment services providers and an authorised deposit-taking institution (ADI), Cuscal’s journey toward listing on the Australia Securities Exchange (ASX) on November 25th 2024 was driven by a strategic need to broaden its access to capital, expand visibility in the Australian financial system, strengthen financial resilience, and position itself for continued innovation and growth.
Given its critical role and highly regulated operations, listing on the ASX presented both a significant milestone and a complex undertaking. Recognising the evolving regulatory landscape, rising demand for real-time payments, and opportunities in regulated data services with the convergence of data, digital identity and payments, the Cuscal Board and Executive Team determined a listing on the ASX was the next step to fuel future expansion.
This presented multiple challenges, including meeting financial reporting frameworks, managing complex governance processes as an existing non-listed public company, managing approvals to align pre-IPO shareholders for a secondary sell-down, preparing a comprehensive prospectus, and coordinating the activities of internal and external stakeholders.
Equally important was positioning Cuscal’s story in an optimal manner for institutional investors. As a B2B payments and regulated data services provider with complex and vast product capabilities and services, Cuscal’s business model differs from that of a direct‑to‑consumer fintech or financial institution. The challenge was to convey Cuscal’s unique value proposition as a compelling equity story – one that demonstrates resilience, scalability and long-term value.
The solution
Cuscal assembled an IPO team, with representatives from finance, legal, risk and strategy teams, and external advisors. The group worked cross-functionally to manage due diligence, identify information gaps, develop investor materials and ensure audit and regulatory readiness including APRA approval under the Financial Sector (Shareholdings) Act 1998. Bank of America Securities served as a key partner in this effort, providing strategic advisory support in its role as Sole Global Coordinator, Sole Bookrunner and Joint Lead Manager on the IPO. From a treasury and financial planning perspective, significant effort was invested in liquidity modelling and capital allocation planning.
The listing on November 25th 2024 raised AU$337m, including AU$40m in new capital, and achieved a market capitalisation of AU$479m at offer price, reflecting strong investor confidence. The benefits of the IPO have flowed to shareholders through growth in the share price since listing, strong financial returns and a sound platform for future earnings.
Best practice and innovation
Best practices throughout the IPO process were evidenced with a structured preparation process that was both agile and collaborative. The team leveraged real-time scenario planning and capital allocation modelling to support informed decision-making throughout the IPO process.
Key innovations included the use of a three-tiered offer structure (institutional, broker firm and employee/director priority) to ensure broad market participation and a guaranteed allocation for eligible internal stakeholders. The practices allowed Cuscal to preserve internal focus while achieving a successful IPO in a dynamic market. A disciplined approach to risk management and a focus on long-term value allowed Cuscal to attract a high-quality register of new long-term institutional investors.
Additionally, Cuscal implemented post-listing investor engagement tools, including a dedicated internal investor relations function, targeted post results investor roadshows, and a digital investor relations hub to help meet public market disclosure requirements.
Key benefits
Cost savings.
Return on investment.
Risk mitigated.
Improved visibility.
Increased system connectivity.
Exceptional implementation (budget/time).
Improved key performance indicator (KPI) metrics.
IPO achieved timetable, valuation and listing oversubscribed.
The IPO marked an enormous strategic milestone for Cuscal. Internally, it catalysed a shift toward greater transparency, collaboration and strategic discipline. Externally, the IPO reinforced Cuscal’s position as a leading player in Australian payments, providing a visible, investable platform for innovation. Cuscal’s Managing Director, Craig Kennedy, noted: “Becoming a publicly listed company will enhance our ability to serve our clients and stakeholders. We are excited by the opportunity to welcome new investors to join us in the next chapter of the Cuscal growth story.”
Nicole Waaka
Head of Global Payments Solutions for Australia, Bank of America
Cuscal’s listing on the Australian Securities Exchange marked a pivotal milestone, opening the door to new investors and signaling the next phase of its growth journey. Bank of America served as a trusted advisor throughout the process, delivering strategic counsel to optimise listing timing, structure and pricing. This included targeted initiatives to enhance key performance indicators through a redesigned capital structure and improved liquidity management. With an initial market valuation of AU$479m, Cuscal is well-positioned to invest in infrastructure upgrades, expand its product offerings and scale its payments capabilities.
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