FX Company CAB Payments Plans to Go Public

CAB Payments Holdings plans to go public via an initial public offering (IPO) in London.

The U.K. FinTech, which specializes in payments services and foreign exchange (FX), announced its objective to float on the London Stock Exchange Thursday (June 8).

“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 U.K. as the home for innovative and growing global businesses,” CEO Bhairav Trivedi said in the announcement.

CAB is seeking a valuation of between 800 million pounds to more than 1 billion pounds ($1 billion to $1.3 billion), the Financial Times reported.

The report also noted the weak state of the IPO market in England, with proceeds from initial public offerings down 80% from last year, and just two main market listings in the first quarter.

Trivedi told PYMNTS last month that while technology has simplified cross-border payments, not all markets have fully tapped the power of innovation.

“There’s not a very consistent use of technology across markets, especially in emerging economies,” he said. “That could [translate to] a situation where you may send some money to some remote geography, and you do not hear back from the [remittance] organization for several days about where your money is.”

That’s where the value of Crown Agents Bank, a Financial Conduct Authority (FCA)-regulated bank and FX provider, comes into play, he said, employing the latest technologies to simplify and streamline the way payments and FX move through emerging markets.

“One wouldn’t expect a 190-year-old bank to thrive in the digital age, but Trivedi said CAB has stayed on top of emerging technology trends over the years by using automation to replace repetitive and labor-intensive back-office tasks, which in turn has enabled greater efficiency and a better experience for customers,” PYMNTS wrote.

CAB is also tapping into the power of artificial intelligence (AI) and machine learning, which Trivedi noted have been crucial to reducing false positives by determining fraud risks much quicker and more accurately than humans without sacrificing financial crime compliance.