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Ondon could soon welcome its latest tech unicorn after a Sutton-based fintech unveiled plans to go public, providing new signs of a revival in activity on the capital’s stock exchange.
CAB Payments, which offers cross-border business-to-business payments and foreign exchange services, said it was preparing to list shares on the main market of the London Stock Exchange.
According to an estimate by Mergermarket, the value could range from £800 to over a billion pounds. CAB did not comment on the company’s expected market capitalization.
Bhairav Trivedi, CEO of CAB Payments, said: “I am extremely pleased with the move to list CAB Payments’ shares via a premium listing.
“Our intention to list on the London Stock Exchange is a sign of confidence in the quality offering we offer to our clients in a large and growing market; Confidence in our strong financial profile, backed by a track record of revenue and Adjusted EBITDA growth and cash generation; and confidence in the UK as the home of innovative and growing global companies.
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He told the Standard: “The big benefit of the listing is the ability to access pools of liquidity should we need it in the future and give us the recognition we need to better serve our clients.”
“We looked at other markets but for us the LSE was the best option – we are extremely bullish on both the UK economy and the LSE and it’s important to be close.”
The company, which organizes cross-border payment flows to and from over 150 countries, reported sales of £109.9m and pre-tax profit of £43.5m in 2022. Trivedi said the company processed over $30 billion in payments last year.
The news marks the second major IPO announcement for the London market in as many weeks, after WE Soda, the world’s largest natural soda maker, decided last week to join the FTSE main market in an IPO that saw the value the company could increase to $8 billion (£6.5 billion).
Raf De Kimpe, CEO of Fintech Week London said: “A company with unicorn status is always impressive, but I think what impresses me even more in this case is that CAB has had a steady revenue stream and impressive profits over the last few years scored.” .
“The potential listing of CAB is certainly a sign that we are moving in a positive direction and shows a recovery in the IPO markets, which in turn is likely to impact VC investments for fintechs. After the reconciliation we have seen in the fintech industry lately, I expect that many other former startups and scale-ups that have become major international players in recent years will also follow this path .”
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