Cuscal told the market on Monday it has pre-allocated about $128m in shares to a small group of investors ahead of this month’s initial public offering, which looks set to proceed.

The payments company is raising $336.8m for its IPO on November 25.

As reported by DataRoom on Friday, Cuscal has lodged its IPO prospectus and has launched its management roadshow.

The IPO was priced two weeks ago at $2.50 per share, which gives it a $479m market value.

It equates to 7.7 times earnings before interest, tax, depreciation and amortisation for the 2025 financial year.

The appeal to investors has been that the price is seen as cheap at 13 times net profit when the overall market is trading at 19 times.

The Cuscal float is likely to be overshadowed by HMC Capital’s DigiCo REIT – to list by Christmas – following another announced purchase of data centre assets.

HMC is buying the iSeek centres for $400m, adding to its $1.94bn Global Switch Australia data centres purchase.

Sources close to the deal are confident it will get across the line with respect to investor support and is on track to make its debut next month.

It will raise about $1.6bn from investors.

The DigiCo REIT will have 13 data centre properties the group has purchased for about $3.9bn.

Next on the to-do list of the David Di Pillabacked HMC Capital could be the Fujitsu Australia data centres.

This article first appeared in The Australian.

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