Following an announcement on June 8 of its intention to float, CAB Payments has now confirmed it will proceed with an initial public offering (IPO) expected in July, becoming just the third London listing in 2023.
“Following significant interest in CAB Payments, the Board is delighted to confirm the management team’s intention to float on the London Stock Exchange via a premium listing,” said Ann Cairns, chair of CAB Payments.
CAB Payments, which is a fintech company that specialises in foreign exchange and payment services for businesses that send money from developed to emerging markets, has previously been reported to be seeking a valuation of between £800m to more than £1bn.
The final offer price, meanwhile, will be determined following a book-building process, with admission to the market currently anticipated to occur in July 2023.
“Bringing CAB Payments to the public market underscores our confidence in the business and its value generation potential, as well as our confidence in the UK as the home for innovative and growing global businesses,” said Cairns.
The company chair, and a former senior executive at Mastercard, continued that this cements CAB Payments as a preferred payments and forex partner for blue-chip companies transacting in emerging markets.
“We have been pleased with the investor engagement so far and look forward to further discussing our value proposition with investors, based on our strong track record of profitable and cash generative growth,” she continued.
“This was built on the foundation of a well-invested technology platform, a compliance-first culture and robust governance frameworks, and a business model that delivers real economic development benefits to emerging markets.”
The company has confirmed that it intends to apply for admission of its ordinary shares to the premium listing segment of the Official List of the Financial Conduct Authority (FCA) and to trading on the main market for listed securities of London Stock Exchange Group (LSEG).
Ordinary shares are the shares of a company that give shareholders the right to vote in the company's meeting and an income in the form of dividends from the corporation's profits.
The payment firm’s decision will bring happiness for London’s capital markets industry. Despite its prestige, LSEG has had a difficult year that has seen only two listings take place on its main market.
This is part of a wider trend with the number of companies listing in the UK falling 40 percent since 2008, prompting the FCA to start consulting on reforms to the stock market last month.
Also last month, fintech giant Revolut’s leadership attacked the UK’s regulatory sphere and said that it would not consider a listing in London.
Payments firms that have listed in London include Wise, which made its stock market debut in July 2021.