General Commentary & Highlights:
- CAB Payments, the holding company for Crown Agent Bank (CAB), a B2B FX and payments specialist got listed on the London Stock Exchange on 6th July ‘23
- The deal had a market cap of £851 mil. at the IPO (largest public debut in London this year)
- The stock fell sharply on its first day of trading (9.6% fall in stock price by close of day)
- Overall Strong Financial Profile: Impressive revenue growth of c.79% Y-O-Y, fueled by strong growth in FX & payment volumes and higher take rates; Adjusted EBITDA increased by c.480% Y-O-Y, EBITDA margin at c.50% in 2022
- Strong defensive moat with coverage across 150+ markets, c.220 trading partners and c.25 central bank relationships; Specializes in B2B FX and payments to/from emerging markets
- Future growth strategy focuses on enhancing products, expanding geo footprint, and increasing customer base (e.g., global tier 1 banks)
Please do not hesitate to contact Anupam Majumdar at Anupam@FlagshipAP.com or Simone Remba at Simone@FlagshipAP.com with comments or questions.