A fresh boost for London’s IPO scene this week as CAB Payments, which facilitates global payments and has a subsidiary with a UK banking licence, has announced its intention to float on the LSE. The bank executes and manages payments across 143 currencies and markets. We understand that retail investors will be invited to participate in this offer.
The news follows hot on the heels of We Soda’s decision to launch an IPO in London. Some sources are putting the IPO value at between the £800m and £1 billion mark.
CAB Payments specialises in business-to-business cross-border payments and foreign exchange with a particular focus on emerging markets. By intending to list on the LSE, it’s following in the footsteps of international money transfer company WISE which chose London for its launch in 2021, albeit through a direct listing.
“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,” explained CAB Payments’ CEO Bhairav Trivedi.
Unlike WISE, which is classed as an electronic money institution, CAB Payments’ wholly-owned subsidiary Crown Payments Agents Bank has a UK banking licence. This means it must meet rigorous compliance standards, which are valued by other banks, governments and international organisations, and also enables it to offer a broader range of products and services to customers.
The move is another boost for London after confidence in the capital took a knock after several high-profile companies appeared to shun the city for a New York listing.
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“After the drought of IPOs in the capital, the taps are now being slowly turned on and the flotation tank is starting to fill, but don’t expect the trickle to turn into a flood just yet,” warned Susannah Streeter, head of money and markets at Hargreaves Lansdown. “Although a greater sense of calm has returned to the markets following the jitters caused by the banking sector scare in the spring, there is still uncertainty about the direction of interest rates which could still provoke unsettled trading going forward.”
The intention is to include retail investors in the offer, and not just institutional investors, and Streeter said this must be welcomed “as far too many listings in recent years have excluded regular investors from taking part.”
However, retail investors should be aware that a period of volatility can follow such launches, so they should ensure they are well-diversified before taking up any offer.
