Zip Industries' pitching day has finally arrived.
Pinstriped bankers from each of the major banks have started spruiking their knowledge of single taps systems and the associated servicing market, seeking to impress Zip's major shareholder Quadrant Private Equity.
Equity capital markets teams are expected to tell Quadrant that Zip could be marketed to listed equity investors as both a defensive and growth stock, with infrastructure-like properties from its recurring revenue servicing business.
That's banker speak for a float at 20-to-25-times profit, which would be enough to cause considerable heartache among the value investor community and possibly further.
Bankers head to the pitches knowing that Quadrant also has Gresham Partners courting trade interest in the unit, with indicative bids due in the next fortnight.
It'll be interesting to see which way the sale goes. While Quadrant may prefer a quick exit via trade bid, management teams often love the branding benefits and prestige that comes with an ASX-listing.
The IPO mandates are expected to be signed early next week.
