Fintech
Payments FinTech Ebury Reportedly Planning UK IPO
Payments FinTech Owned by Santander Ebury It is said to be planning to go public in the UK
The London-based firm is working with investment bankers at Goldman Sachs on the plan $2.5 billion initial public offering (IPO), the Financial Times (FT) reported on Sunday (July 21), citing people familiar with the matter.
The FT noted that Ebury’s move to list in the UK is a “rare vote of confidence” for the London Stock Exchange during a listing drought. Many companies have expressed interest in listing, but volatile markets and high interest rates have spooked investors.
The report also highlights last year’s listing of rival FinTech CAB Paymentswhose shares fell more than 70% after its IPO. At the same time, the FT added, some FinTechs are choosing to list in New York, such as Klarna, which is reportedly preparing a US IPO for next year.
Other companies are showing more caution regarding the listing, such as StubHubwho recently put his IPO pending.
In May, the CEO of the Swedish FinTech Trustingly said an IPO was not yet on the company’s radardespite demonstrating a solid financial situation, because it must sell its business model to investors before it can think about a stock market listing.
“We need another year or two to really prove to the market that open banking is real, it’s here,” said Trustly’s CEO. John Tjarnberg said at the time.
However, a Goldman Sachs report earlier this year argued that 2024 could mark a turning point for the IPO market, with its IPO Issuance Barometer hitting its highest level in two years.
“We expect the US economy continue to grow“The nominal yield on the 2-year U.S. Treasury note will decline modestly and valuations will remain historically rich,” Goldman Sachs strategists wrote. “If soft data improves to match hard economic data and equity investors’ pricing of economic growth, this could lead to a further increase in our IPO Issuance Barometer in the coming months.”
PYMNTS has reached out to Ebury for comment but has not yet received a response. The company’s services include cross-border payments, payroll transfers, currency risk management and corporate lending.
Founded in 2009 by Spanish engineers Juan Lobato and Salvador García, the company has expanded its business global footprint in 2022 with the purchase of the Brazilian FinTech Bex.
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