Transaction processor CAB Payments Holdings Ltd. confirmed it plans to pursue an initial public offering in London, giving a much-needed boost to a flagging market that’s been beset by defections and canceled listings.
(Bloomberg) — Transaction processor CAB Payments Holdings Ltd. confirmed it plans to pursue an initial public offering in London, giving a much-needed boost to a flagging market that’s been beset by defections and canceled listings.
The IPO on the London Stock Exchange will consist of a stake sale by backer Helios Investment Partners and other shareholders, CAB Payments said in a statement Thursday, reiterating a plan it first announced a week ago. The company won’t raise any money in the sale, and the size of the offering is yet to be determined.
CAB Payments could be valued at £800 million ($1 billion) to more than £1 billion in the IPO, people familiar with the matter said, asking not to be identified discussing confidential information.
“We have been pleased with the investor engagement so far and look forward to further discussing our value proposition with investors,” Ann Cairns, chair of CAB Payments, said in the statement, citing “significant interest” in the company.
CAB’s announcement came a day after WE Soda canceled a planned London listing, citing cautious IPO investors in the UK. Semiconductor designed Arm Ltd., a UK technology powerhouse, chose Nasdaq in the US for its listing, which is planned for this year.
READ MORE: WE Soda Scraps London IPO in Another Blow to UK Market (1)
CAB Payments operates Crown Agents Bank, which processes cross-border business-to-business payments and and does foreign exchange. The firm specializes in emerging markets.
Barclays Plc and JPMorgan Chase & Co. are global coordinators on the offering, while Cannacord Genuity Group Inc., Liberum and Peel Hunt are joint bookrunners.
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