CAB Payments nears $426m in London IPO

British money transfer group CAB Payments has successfully completed its initial public offering (IPO), selling up to £335 million ($426 million) worth of shares, according to the company’s announcement on Thursday. This development provides a positive boost to London’s capital markets.

The total amount includes shares placed through an over-allotment option that banks may exercise upon the stock’s full debut on the London Stock Exchange (LSE) scheduled for July 11. The shares were sold at a fixed price of £3.35, implying a market capitalisation of £851 million for the payments group.

Chief Executive Bhairav Trivedi expressed confidence in the company’s proposition and the expanded investor base, as well as reaffirming the UK as an ideal destination for innovative and growing global fintech businesses.

CAB Payments’ IPO comes at a time when London’s appeal as a capital markets centre is under discussion following the recent moves of domestic or locally listed firms to other exchanges. However, despite the subdued listing activity amid rising interest rates, cash raised through IPOs in Britain saw a 29% increase in the first half of the year, signalling a potential rebound for the markets.

Scott McCubbin, EY’s IPO leader for the UK and Ireland, acknowledged the challenges faced by the London IPO market due to macroeconomic and geopolitical pressures. However, he expressed optimism about the long-term outlook, citing expectations of larger IPOs in 2024 and a strong pipeline of potential listings.