UK fintech raises up to £335mn in rare London IPO

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UK payments company CAB Payments has raised more than £300mn in one of London’s few IPOs this year.

The offer price of £3.35 a share gave the group, which specialises in foreign exchange and payment services for businesses sending money to emerging markets, a market capitalisation of £851mn. Its shares fell more than 4 per cent in morning trading to £3.20.

The IPO, which was announced in June, is a rare bright spot for the UK stock market that has had a dearth of new listings this year.

“Deciding to list signifies . . . the confidence that we have in the UK as the home for innovative and growing global fintech businesses,” said chief executive Bhairav Trivedi.

A combination of limited liquidity and post-Brexit uncertainty have been blamed for the lack of new listings. Earlier this week, UK broker Numis warned of the “effective closure” of the London IPO market.

In June, soda ash producer WE Soda blamed “extreme investor caution in London” when it cancelled its planned $7.5bn listing, which would have been the UK’s biggest this year.

In June, Trivedi told the Financial Times that he thought “more companies need to show they’re committed to their home geographies”.

UK listed fintech stocks have been struggling with rising inflation and worsening consumer sentiment. Shares in Wise, another UK business with a focus on cross-border payments, have fallen almost 35 per cent since the IPO in July 2021.

Investors have also cut the valuation of private fintech groups. In June, venture capital group Molten Ventures reduced the valuation of its stake in Revolut, one of the highest valued fintechs in the UK, by 40 per cent.