CAB Payments Holdings intends to float on LSE
CAB Payments Holdings Limited today announced its intention to publish a registration document and its potential intention to undertake an initial public offering (IPO).
Should CAB Payments proceed with the Offer, the company will apply for admission of its ordinary shares to the premium listing segment of the Official List of the FCA and to trading on London Stock Exchange’s main market for listed securities.
CAB Payments aims to transform the way payments and FX move to and from emerging markets, connecting traditionally hard-to-reach regions to global financial infrastructure. Headquartered in London, United Kingdom, CAB Payments is facilitating flows to and from over 150 countries.
CAB Payments has developed long-term customer relationships, with 96% retention among its largest 100 clients, whilst at the same time increasing its total client count by 14.1% over the last three years (i.e. between FY2020 and FY2022).
CAB Payments’ wholly-owned subsidiary, Crown Agents Bank, has a UK banking licence, making it a preferred provider to other banks, governments, aid organisations and other counterparties that value the rigorous compliance standards required by a banking licence, while also enabling it to offer a broader range of products and services.
Adjusted EBITDA (i.e. EBITDA including net interest income and excluding non-recurring operating expense) increased 265 per cent to £55 million in 2022 (2021: £15 million), with an adjusted EBITDA margin of circa 50 per cent (2021: 28 per cent).
Operating free cash flow increased 359 per cent to £50 million (2021: £11 million), equating to strong cash conversion of 92 per cent in 2022.
Revenue of £41.3m for the three months ended 31 March 2023 was driven by higher volume and average take rates (calculated as FX and cross-currency payments income divided by respective volumes) and new customer wins made in 2022.
Revenues are 145 per cent higher than in the same period last year, with March 2023 monthly results being the 3rd highest month on record.