CAB Payments becomes latest group to plot London listing
‘Britain is a home for innovative and growing global companies’: Cross-border payments company becomes latest group to plot a London listing
- CAB Payments intends to be listed on the LSE’s main market for listed securities
- Boss says the plans are a vote of confidence in London as a financial centre
- Private investors can participate in the IPO via the REX platform
A business-to-business cross-border payments company is the latest to reveal plans for an IPO in London.
CAB Payments Holdings revealed its “potential intent” for an IPO, which bosses say will help broaden ownership, improve transparency and drive sustainable growth.
The company’s announcement of its intention to go public comes a day after WeSoda revealed similar plans, while Amicorp Fund Services and retirement technology company Smart have also said they have plans to go to the City soon.
CAB CEO Bhairav Trivedi said the move demonstrates confidence in the group’s offerings, market and “strong financial profile” – as well as “confidence in the UK as the home base for innovative and growing global companies”.
‘A home for innovative and growing international companies’
It comes amid fears the city has lost its position as a major listing hub after the amount raised in London IPOs fell by 80 per cent a year to just £81m in the first quarter of 2023.
London’s main market saw just two IPOs in that period, raising £63 million. There were three IPOs in the junior AIM market, raising £18 million.
This year also saw chipmaker Arm’s high-profile censure of London as other companies chose to move their main listing elsewhere.
CAB Payments is a business-to-business cross-border payment and currency provider specializing in emerging markets.
The group’s former parent company, Crown Agents, was founded in 1833, but CAB was acquired by Helios funds in 2016, contributing to its growth.
CAB achieved a total income of £109.4m in 2022, up from £53m last year, with an adjusted pre-impact income of around £54.6m, according to its own figures.
But sales rose 145 per cent year-on-year to £41.3m for the three months of this year, driven by higher “volume and average take-up rates … and new customer wins” from the previous year, CAB said.
If CAB goes ahead with its plans, it will list common stock for trading on the London Stock Exchange’s main market for listed securities.
In addition to institutions such as banks, retail investors can participate through an intermediary offering through the REX platform.
Mr Trivedi, who previously held a number of senior roles in the payments industry, said: ‘Our intention to be listed on the London Stock Exchange is a sign of confidence in the high-quality offering we offer our clients in a large and growing market. ; confidence in our strong financial profile, supported by a track record of revenue and Adjusted EBITDA growth, as well as cash generation; and confidence in the UK as the home base for innovative and growing global companies.’
He added that the move would “broaden” CAB’s ownership and bring “more of the transparency that we value so much in our business model.”
“Operating as a publicly traded company will help us continue our strategy to deliver long-term sustainable growth, all to strengthen our position as the preferred payment and forex partner for blue-chip clients transacting in emerging markets.”