Bloomberg is reporting that Santander-backed cross-border payments platform Ebury is holding discussions with banks to underwrite a £2 billion initial public offering on the London Stock Exchange.
Citing “people familiar with the matter”, Ebury is said to be aiming to float on an unspecified date in 2025.
Santander took a 50.1% stake in Ebury in November 2019 through a £350 million strategic investment to support Ebury’s expansion into Latin America and Asia.
According to financial statements published with Companies House in November 2023, Ebury booked £25.5 billion worth of volumes in the financial year ending 30 April 2023 with revenues totalling £204 million.
Operating losses came to £7 million, though this was a significant contraction from £31 million in losses the previous year and a £49 million deficit in 2021.
Ebury facilitates foreign exchange conversions, forex trades and payments requests.
If the IPO is confirmed, it would be a significant boost to the Square Mile’s beleaguered capital markets, where IPOs have been like hen’s teeth as companies chase higher valuations across the Atlantic.
Somewhat forebodingly, London’s largest IPO in 2023 was another payments platform, CAB Payments.
CAB’s IPO has not been a success, with its valuation collapsing 70% following a profit warning that led to chief executive Bhairav Trivedi’s departure last month.
However, CAB’s problems stem from the company’s exposure to volatile African currencies including the Nigerian naira.
According to Ebury’s accounts, the group has diversified exposure with subsidiaries across Europe, Australia, New Zealand, China and North America.