Payments processor Worldpay looks set to become a new FTSE 100 candidate as its private equity owners announce their intention to float the business.

Advent and Bain Capital bought 80% of Worldpay from RBS (RBS) in 2010 for £1.7 billion and acquired the remainder in 2013. Now it could attract a market value of up to £6 billion, according to some press reports.

New York-listed peer Global Payments (GPN:NYSE) trades on a trailing enterprise value to earnings before interest, tax, depreciation and amortisation multiple of 14.3.

A similar valuation would imply Worldpay would be worth about £5.4 billion on an enterprise value basis, with roughly a £4 billion market capitalisation. This makes it easily large enough for FTSE 100 inclusion, if other stock exchange conditions are met.Phone payments 2The listing is likely to be hotly anticipated because of a dearth of large, high quality payments companies in the UK. US investors are spoiled for choice, with the likes of Visa (V.:NYSE), MasterCard (MA.:NYSE) and American Express (AXP:NYSE).

Worldpay also owns a 6% stake in unlisted Visa Europe worth roughly £580 million, though 90% of the value of any sale of the stake would go to Advent and Bain under the current terms of the initial public offering (IPO).

Issue Date: 18 Sep 2015