Dubai: The UAE based financial services conglomerate Finablr, which includes, UAE Exchange, Travelex and Xpress Money, on Tuesday said it intends to list its shares on London Stock Exchange following a potential initial public offer (IPO).
The payments and foreign exchange company expects to register to launch an IPO on LSE that could raise proceeds of $200 million (Dh735 million).
“Pending the final decision if to proceed with its intention to IPO, we have applied for admission of our ordinary shares to the premium listing segment of the Official List of the Financial Conduct Authority and to trading on the main market of the LSE,” said Promoth Manghat, Chief Executive of Finablr.
The company expects to publish the registration document in due course that has been submitted for approval to the UK Financial Conduct Authority.
Finablr is the holding company of UAE Exchange, Travelex Holdings and Xpress Money and is a global platform which provides cross-border payments and consumer solutions, consumer foreign exchange solutions and B2B and payment technology solutions to consumers and businesses.
If the company decides to go ahead with the IPO, Manghat said, it will list a minimum of 25 per cent that would consist of issue of new shares and existing shares to be sold by some of its investors.
The company intends to use the net proceeds to finance expansion plans and reduce net debt, it said.
The group is able to access customers directly through its licensed operations in 44 countries and indirectly through agency relationships in over 170 countries. “The strength of Finablr comes from our four decades of experience and the trust that millions of customers have placed with us. Our goal is quite simply to enable consumers to realise their ambitions and business to fulfil its potential,” said Dr B.R. Shetty, Founder, Co-Chairman and Non-Executive Director.
Ahead of the planned IPO, the company has engaged Barclays Bank, Goldman Sachs International and J.P. Morgan Securities to act as Joint Global Coordinators and Joint Bookrunners and EFG-Hermes, BofA Merrill Lynch and Numis Securities to act as Joint Bookrunner in the event of offer proceeds. Evercore Partners is acting as financial adviser to the company.
Finablr’s financial disclosures showed its EBITDA [Earnings before interest, tax, depreciation and amortisation] grew by 28.8 per cent in 2017 and by 12.6 per cent in 2018. Ever since the formation of the holding company, it has invested more than $162 million in the Group’s platforms in 2016, 2017 and 2018.
“Given its strong trackrecord of high levels of profitability and cash flow generation, with relatively low ongoing maintenance capital expenditure, the group has been able to demonstrate significant financial success and is positioned to sustain its competitive advantage and reap the benefits of these investments over the coming years,” said Manghat.