Shares Of UK Fintech CAB Payments Fell During Its London Debut
Despite initially pricing its shares at £3.35 each, which would have led to a market capitalization of £851 million, CAB Payments experienced a drop in share value to around £3.15 during early afternoon trading.
In this year’s relatively rare London listings, shares of UK payments fintech CAB Payments declined after its IPO.
CAB Payments had initially priced its shares at £3.35 each, resulting in a market capitalization of £851 million. However, during early afternoon trading, the claims of the cross-border and foreign exchange group experienced a decrease to approximately £3.15.
According to CEO Bhairav Trivedi, the listing of CAB Payments would expand its reach and enhance the level of transparency deeply ingrained in its business model. Trivedi further expressed confidence in the UK as an ideal hub for flourishing global fintech enterprises, emphasizing that the decision to go public demonstrates their trust and belief in the country’s capacity to foster innovation.
With its subsidiary, Crown Agents Bank, holding a UK banking license, CAB Payments is a favored provider to banks, governments, and aid organizations. This advantage highlights the company’s credibility and strengthens its appeal within the financial landscape.
However, concerns have emerged regarding London’s attractiveness as a destination for listings, prompted by notable instances of prominent companies opting for other stock markets instead.
London’s stagnant market for new listings has been attributed to the lingering uncertainty following Brexit and the lack of market liquidity.
In a recent development, Arm, a chip market company based in Cambridge, decided against listing in London, despite facing government pressure. Instead, the company chose to go public in the United States.
Adding to the challenges faced by the London market, natural soda ash producer WE Soda canceled its intention to list in London due to a disagreement over valuation.
The absence of these high-profile listings has raised concerns about the appeal and competitiveness of London’s financial market. It highlights the need to address the uncertainties and liquidity constraints that have hindered new listings in the post-Brexit era.
