UAE Exchange branch
A UAE Exchange branch in Sharjah. Image Credit: Ahmed Ramzan/Gulf News Archives

Dubai: Shares of Finablr, the UAE-based payment solutions company, tumbled 4 per cent on the listing day in London amid weak market sentiment. The IPO comes days after the listing of Uber and Lyft, whose shares also witnessed price decline due to adverse sentiment.

Finablr had to reduce its offer price at 175 pence per share, down from the previous price of 210-260 pence, valuing the company at $1.5 billion. On Wednesday, Finablr shares were trading at 161.02 pence, down 4 per cent.

“Weak listing is not surprising given that IPO itself had been somewhat of a struggle and the company had to reduce its offer price lower,” Nishit Lakhotia, head of research at SICO Bank said.

The offer comprised of 87.7 million new shares issued by the company to raise gross proceeds of £153 million ($200 million) and 87.3 million shares being sold by the selling shareholders, equating to a total offer size of £306 million ($400 million) and representing 25 per cent of Finablr’s issued share capital.

“We are very confident about the long-term prospects of the business and remain committed to generating the greatest value for all our shareholders,” Dr B.R. Shetty, Founder, Co-Chairman and Non-Executive Director said in a statement.

Other company officials also said the stock is a long-term bet.

“It’s definitely long-term buy because the group has a great combination of brands such as Travelex and others,” said a company official who did not wished to named.