CAB Payments confirms it WILL list on the London Stock Exchange following City’s disappointment after WE Soda delisted UK stocks
- The IPO of CAB Payments already took place in July
- Earlier today, WE Soda London dealt a blow by abolishing LSE listing plans
B2B cross-border payments group CAB Payments Holdings has confirmed plans to launch on the London Stock Exchange this year.
A trend of companies rejecting London instead of New York has gained momentum this year, with global banking troubles causing the amount raised from UK listings to drop 80 percent in the first quarter, according to figures from Ernst & Young.
WE Soda dealt another blow to the market yesterday after scrapping plans to go public in London over valuation disagreements.
Boost: CAB Payments Holdings has confirmed plans to launch on the London Stock Exchange this year
A final bid price has yet to be set for CAB Payments’ listing, but an IPO in London’s main market could take place as early as next month.
The offer will consist of a secondary sell-off of existing common stock held by Merlin Midco Ltd and “certain” other shareholders. The IPO is aimed at institutional investors outside the US.
The group said there was “considerable interest” in a possible LSE float since the move was hinted at earlier this month.
Analysts previously estimated the company could achieve a valuation of between £800m and £1bn.
Ann Cairns, Chairman of CAB Payments, said: “Bringing CAB Payments to the public market underscores our confidence in the company and its potential for value generation, as well as our confidence in the UK as the home of innovative and growing global businesses , confirming CAB Payments as the preferred payments and forex partner for blue-chip companies transacting in emerging markets.
“We are pleased with investor engagement to date and look forward to further discussing our value proposition with investors, based on our strong track record of profitable and cash-generating growth built on the foundation of a well-invested technology platform, a compliance first culture and robust governance frameworks, and a business model that delivers real economic development benefits to emerging markets.”
Barclays Bank and JP Morgan Chase and Co have been appointed as coordinators and sponsors for the IPO.
Claire Trachet, CEO of Business Advisory Trachet, said: ‘International companies as well as UK companies are still looking to list on the LSE, but until economic conditions improve and investor confidence and appetite are restored, the city will be a largely inactive IPO market.
“I think we will eventually see an increase in UK listings, but this will not happen until inflation rates stabilize and looming recession fears fade, lifting the curtain on the still-uncertain economic outlook.
“Meanwhile, we have quickly moved into an environment where companies seek financing through private equity vehicles or strengthen their position through mergers and acquisitions.”
According to research from Proactive Investors, there have been more than a dozen IPOs since early April, including four in the first days of June.
In the secondary market, the study recorded 20 fundraisers by existing listed companies last month for a total of just under £40m, the largest being just over £6m, the smallest £250,000.