Buy now, pay later (BNPL) operator Zip is considering a secondary listing of its shares on the Nasdaq stock exchange to capitalise on increasing investor interest in the United States. The company, which will maintain its primary listing on the Australian Securities Exchange (ASX), made the announcement alongside its full-year results. Zip provides consumers with point-of-sale credit and digital payment services. The company operates across numerous global markets, connecting merchants and consumers.
Zip reported cash earnings of $170.3 million for the full year, a 147 per cent increase compared to the previous financial year. Total transaction volume across Zip’s payment platform reached $13.1 billion, representing a 30.3 per cent jump. The company believes a dual listing on the Nasdaq would maximise long-term shareholder value and support a substantial growth opportunity within the US market.
Approximately 80 per cent of Zip’s earnings are generated in the US, where it faces competition from other BNPL providers, including Afterpay, owned by Block, Affirm, Sezzle, and Klarna. Zip has experienced a notable rise in US investor interest, driven by its growth rates in that market. Currently, offshore institutional investors hold around 16 per cent of Zip’s issued capital.
The potential dual listing is still subject to approval by the Zip board and will require necessary regulatory clearances in the United States before it can proceed.
