The Australian company Afterpay, which buys now, pays later, weighs the American listing

Australian buy-now-pay-later company Afterpay said Tuesday that it is exploring a US listing after North America becomes the largest market, offering global investors an easier way to own a stock that has been high due to the pandemic. has taken flight.

Afterpay has engaged Goldman Sachs to provide advice on the listing, two sources with direct knowledge of the case told Reuters. Goldman declined to comment.

The Melbourne-based company was last valued at nearly A $ 37 billion ($ 28.7 billion), despite never making a profit, thanks to the coronavirus-driven boom in online shopping and rapid expansion into overseas markets, including the United States.

After releasing its third-quarter results on Tuesday, Afterpay said sales in North America nearly tripled, overtaking Australia and doubling the total value of the transactions it processed to A $ 5.2 billion compared to a years earlier.

A US listing would likely further open up the Australian fintech star to an investor base that gives more weight to growth, and possibly also provide easier access to capital to fund expansion plans.

Nick Molnar, co-CEO of Afterpay, who co-founded the company in 2015, told Reuters it was a “proud Australian-based organization,” but a US listing could provide “attractive opportunities.”

“The priority in exploring a US listing is purely on whether it gives the company more operational leverage from the perspective of being present in the market that is now the largest contributing segment … and whether it provides us with the right investor base “, he said.

Afterpay said in a statement that it intended to keep its headquarters in Australia, but did not specify whether a US market debut would be based on a dual listing structure or result in the abandonment of its Australian berth. Nor did it provide a timetable.

In North America, Afterpay is up against Affirm, Zip Co’s Quadpay, newcomer PayPal and Swedish Klarna, which is valued at $ 31 billion and looks at a direct listing in the United States.

Affirm’s valuation of $ 17 billion was based on 4.5 million shoppers, while Afterpay had 14.6 million, implying a valuation of more than $ 47 billion, said Emanuel Datt, founder of Datt Capital, which in 2018 shares of Afterpay for bought about A $ 7.00.

“US investors are generally willing to pay a higher multiple for a growth company like Afterpay. That has to do with the deeper pools of capital available… compared to Australia,” said Datt.

Shares of Afterpay traded flat at A $ 126.17 on Tuesday mid-session, compared to a slight dip in the broader market. The stock is up more than 200% since its pre-pandemic high in February 2020.

Afterpay’s growth has slowed in Australia and will likely face margin pressure this year as the country’s largest bank and PayPal launch BNPL offerings with a promise of lower fees.

The company launched in parts of mainland Europe last month and plans to move to Asia. The own-brand savings accounts linked to Westpac Banking Corp are expected to go live later this year.