CAB Payments becomes latest group to plot London listing

‘Britain is a home for innovative and growing global businesses’: Cross-border payments company becomes latest group to plot a London listing

  • CAB Payments plans to list on the LSE’s main market for listed securities
  • Boss says plans are a vote of confidence in London as a financial centre
  • Retail investors will be able to participate in the IPO via REX platform  

A business-to-business cross-border payments company has become the latest to reveal plans for a London initial public offering.

CAB Payments Holdings revealed its ‘potential intention’ for an IPO, which bosses say will help broaden its ownership, improve transparency and drive sustainable growth.

The firm’s announcement of its intention to list comes a day after WeSoda revealed similar plans, while Amicorp Fund Services and pension tech firm Smart have also said they have plans to list in the City soon.

Bhairav Trivedi, CAB chief executive, said the move shows confidence in the group’s offering, market and ‘strong financial profile’ – and also ‘confidence in the UK as the home for innovative and growing global businesses’.

‘A home for innovative and growing global businesses’

‘A home for innovative and growing global businesses’

It comes amid fears the City may have lost its position as a key listing hub, after the amount raised in London floatations slumped 80 per cent annually to just £81million in the first quarter of 2023.

London’s main market saw only two IPOs in the period, raising £63million. There were three flotations in the junior AIM market, raising £18million.

This year has also seen the high profile snub of London from chip maker Arm as other companies opted to move their main listing elsewhere.

CAB Payments is a business-to-business cross-border payments and foreign exchange provider, specialising in emerging markets.

The group’s former parent company, Crown Agents, was founded in 1833, but CAB was acquired by Helios funds in 2016, which has helped to supercharge growth.

CAB achieved total income of £109.4million in 2022, up from £53million the previous year, with adjusted earnings before nasties of around £54.6million, according to its own figures.

But revenue rose 145 per cent year-on-year to £41.3m for the three months of this year, driven by higher by ‘volume and average take rates… and new customer wins’ made the previous year, CAB said.

Should CAB go ahead with its plans, it will list ordinary shares to trade on London Stock Exchange’s main market for listed securities.

As well as institutions like banks, retail investors will be able to participate through an intermediaries offer via the REX platform.

Mr Trivedi, who has previously held a number of senior roles across the payments industry, said: ‘Our intention to list on the London Stock Exchange is a sign of confidence in the high quality offering we provide to our customers in a large and growing market; confidence in our strong financial profile backed by a track record of revenue and Adjusted EBITDA growth, as well as cash generation; and confidence in the UK as the home for innovative and growing global businesses.’

He added the move would ‘broaden’ CAB’s ownership and ‘bring more of the transparency that we value so highly throughout our business model’.

‘Operating as a publicly traded company will help us to continue to pursue our strategy of delivering long-term sustainable growth all cementing our position as a payments and forex partner of choice for blue-chip customers transacting in emerging markets.’

Read More

Leave a comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More