CAB Payments Holdings Ltd on Thursday revealed plans for an initial public offering on the London Stock Exchange’s Main Market.
CAB is a London-based business-to-business cross-border payments and foreign exchange provider, specialising in emerging markets. The company noted that it covers over 150 countries.
‘It uses its network, technology and expertise to support its blue-chip customer base to move money where it is needed most,’ it explained.
The company added that its wholly-owned subsidiary Crown Agents Bank has a UK banking license. It said this makes it a preferred provider to other banks, governments and aid organisations.
In 2022, CAB Payments reported adjusted earnings before interest, tax, depreciation and amortisation of £55 million, up from £15 million a year earlier. Total income more than doubled to £109.4 million from £53.5 million. Pretax profit climbed to £43.5 million from £9.5 million.
Looking ahead, CAB Payments expects total income to grow by about 25% annually in 2023. It expects exceptional costs in the year to be primarily associated with those relating to its preparation for the IPO.
Should CAB Payments proceed with the initial public offering, it shares will be admitted to trading on the main market of the London Stock Exchange. The offer is expected to comprise a secondary sell-down of existing ordinary shares by Merlin Midco Ltd.
The company said it has engaged Barclays Bank PLC as joint global co-ordinator and joint bookrunner, as well as JP Morgan Securities PLC as sole sponsor, joint global co-ordinator and joint bookrunner.
The company did not say when the IPO will take place or how much it is expected to raise.
Later on Thursday, CAB confirmed that its registration document has been approved by the UK Financial Conduct Authority.
Chief Executive Officer Bhairav Trivedi said: ‘Our intention to list on the London Stock Exchange is a sign of confidence in the high quality offering we provide to our customers in a large and growing market; confidence in our strong financial profile backed by a track record of revenue and Adjusted Ebitda growth, as well as cash generation; and confidence in the UK as the home for innovative and growing global businesses.
‘I am tremendously excited to take the step of listing CAB Payments’ shares via a premium listing. It will broaden our ownership and bring more of the transparency that we value so highly throughout our business model. 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.’
The news follows a recent boost for London, after the world’s largest natural soda ash producer, WE Soda, on Wednesday confirmed its intention to float on the premium segment of the London Main Market.
International specialist fund Amicorp FS (UK) PLC began its first day of trading on Thursday, joining the standard listing segment of the Main Market.
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