CAB Payments’ IPO and Share Price Drop
Shares in UK payments fintech CAB Payments fell yesterday following its IPO, one of the few London listings this year. CAB Payments said it had placed its shares at £3.35 each, giving it a market capitalisation of £851m. But the shares in the cross-border and foreign exchange group dropped to around £3.15 in early afternoon trading.
Expanding Reach and Confidence in UK
The listing would broaden its reach and “bring more of the transparency that we value so highly throughout our business model,” said CEO Bhairav Trivedi. “Deciding to list signifies the confidence that we have in the UK as the home for innovative and growing global fintech businesses,” he added.
Crown Agents Bank and Preferred Provider Status
CAB Payments’ wholly-owned subsidiary, Crown Agents Bank, has a UK banking licence, which the company says makes it a preferred provider to other banks, governments, and aid organisations.
Doubts about London’s Appeal as a Listing Destination
Doubts have been raised about London’s appeal as a listing’s destination following several high-profile moves to other stock markets. The lack of new London listings has been blamed on post-Brexit uncertainty and the lack of liquidity in the market. Earlier this year, Cambridge-based chip market Arm opted not to list in London, despite pressure from the government, instead opting to float in the US. Another blow to the London market came when natural soda ash producer WE Soda cancelled plans to list in London over a valuation dispute.