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British payments company CAB Payments has raised more than £300m in one of only a few IPOs in London this year.
The offer price of £3.35 per share gave the group, which specializes in foreign exchange and payments services for companies sending money to emerging markets, a market capitalization of £851m. Its shares fell more than 4 percent to £3.20 in morning trade.
The IPO announced in June is a rare bright spot for the UK stock market, which has seen a lack of new listings this year.
“The decision to list means…”. . the confidence we have in the UK as home to innovative and growing global fintech companies,” said CEO Bhairav Trivedi.
A combination of limited liquidity and post-Brexit uncertainty is blamed for the lack of new listings. Earlier this week, British broker Numis warned of the “effective shutdown” of the London IPO market.
In June, soda maker WE Soda blamed “extreme caution on the part of investors in London” when it canceled its proposed $7.5 billion IPO, which would have been the UK’s largest this year.
In June, Trivedi told the Financial Times that he believes “more companies need to show they are committed to their home regions.”
UK-listed fintech stocks are grappling with rising inflation and deteriorating consumer sentiment. Shares of Wise, another UK company focused on cross-border payments, have fallen almost 35 percent since its IPO in July 2021.
Investors have also lowered the valuation of private fintech companies. In June, venture capital group Molten Ventures reduced the valuation of its stake in Revolut, one of the UK’s highest-rated fintechs, by 40%.
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