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CAB Payments lists with £851m valuation in boost for London IPO market

Cab Payments completes London IPO
Image credit: Tony Baggett / Shutterstock.com

Business-to-business money transfer firm CAB Payments has completed its public debut at a £851m valuation in a boost for London’s muted IPO markets.

Shares opened at a fixed £3.35 on Thursday on the London Stock Exchange in conditional trading. Its full admission to the premium listing segment of the London Stock Exchange will take place on 11 July.

CAB Payments, which provides infrastructure for money transfers, has raised up to £335m from the initial listing.

“Today marks an important milestone for CAB Payments as we celebrate our first day of conditional dealings on the London Stock Exchange,” said Bhairav Trivedi, CEO of CAB Payments.

“Deciding to list signifies our confidence in the proposition we bring to clients and our new, enlarged investor base, as well as the confidence that we have in the UK as the home for innovative and growing global fintech businesses.”

CAB Payments is formed out of Crown Agents Bank, a 190-year-old British lender, and has become its parent company.

The Sutton-based company organises cross-border payment flows to and from over 150 countries. It reported revenue of £109.9m and pre-tax profits of £43.5m in 2022

CAB Payments’ entry onto the London Stock Exchange comes amid a subdued IPO market both in the UK and globally.

Figures published this week by accounting firm EY showed that prior to CAB Payments there had been 18 issuers to the London stock market in the first half of the year, raising a combined £593m.

High inflation, rising interest rates and geopolitical turmoil have dented IPO activity.

Chancellor Jeremy Hunt is expected on Monday to announce measures to encourage pension funds to allocate some of their capital to startups and infrastructure investments to improve liquidity in capital markets.

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