CAB Payments, a leading player in business-to-business (B2B) money transfers, has entered the public domain, brandishing a valuation of £851m, thereby injecting much-needed dynamism into London’s somewhat subdued initial public offering (IPO) markets.
In the initial listing, CAB Payments managed to secure up to £335m. The shares were launched at a fixed rate of £3.35 in conditional trading on the London Stock Exchange. Complete admission to the premium listing segment of the Exchange is set for 11 July.
Focusing on the provision of infrastructure for money transfers, CAB Payments originated from Crown Agents Bank, a British lending institution with a rich history spanning 190 years. Now, CAB Payments stands as the parent company to this historical entity. Based in Sutton, CAB Payments’ services facilitate cross-border payment flows to and from more than 150 countries.
The company intends to utilise the freshly secured funds to expand its client base and continue to innovate in the FinTech industry. Bhairav Trivedi, CEO of CAB Payments, marked the day as a significant milestone for the company and expressed confidence in its growth and expansion strategies.
Additional data reveals the company’s healthy financial performance. In 2022, it reported a revenue of £109.9m and a pre-tax profit of £43.5m. It’s noteworthy that CAB Payments’ arrival on the London Stock Exchange is happening at a time when the IPO market has been somewhat sluggish, both in the UK and worldwide. EY’s recent figures indicated that only 18 issuers entered the London stock market in the first half of the year, amassing a combined £593m.
CAB Payments CEO Bhairav Trivedi said, “Today marks an important milestone for CAB Payments as we celebrate our first day of conditional dealings on the London Stock Exchange. Deciding to list signifies our confidence in the proposition we bring to clients and our new, enlarged investor base, as well as the confidence that we have in the UK as the home for innovative and growing global fintech businesses.”
It’s hoped that the London IPO market will continue to recover, with Chancellor Jeremy Hunt expected to announce measures to promote pension fund investments in startups and infrastructure, to enhance capital market liquidity.
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