Ebury appoints Goldman Sachs to lead its £2bn UK IPO

Ebury, the fintech firm specialising in cross-border payments, has announced plans for a £2 billion initial public offering (IPO) on the London Stock Exchange.

Goldman Sachs has been appointed to lead this significant financial event, which is expected to take place in the first half of 2025. This move is seen as a rare vote of confidence in the UK capital markets, which have been struggling to attract new listings.

Founded in 2009 by Spanish engineers Juan Lobato and Salvador Garca, Ebury has grown to become a key player in the fintech sector, providing services such as international payments, collections, risk management, and business lending.

The company, which is part of Santander’s PagoNxt payments platform, reported a revenue of £204 million and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of £16 million for the fiscal year ending April 2023. Ebury’s transaction volume for the same period was an impressive £26 billion.

Ebury’s growth strategy has included significant acquisitions, such as the purchase of Brazil’s Bexs in May 2022 and Prime Financial Markets in Africa. These acquisitions have expanded Ebury’s global footprint and service offerings, positioning the company for further growth and market penetration.

The success of this IPO will be closely watched, especially given the challenging market conditions and high interest rates that have deterred many fintech firms from going public.

The previous year’s IPO of CAB Payments, which saw its stock plummet by over 70% shortly after listing, serves as a cautionary tale.

However, Ebury’s decision to list in London, despite considering other locations, signals a renewed confidence in the UK capital markets. This move comes after regulators revamped listing rules to make the London Stock Exchange more attractive to tech and fintech companies.

Meanwhile, some larger fintechs, such as Swedish ‘buy now pay later’ Klarna, are preparing to list in New York.

The success of Ebury’s IPO could potentially pave the way for other fintech firms, such as Zopa, Revolut, Starling, and Zilch, which have also indicated plans to go public in the coming years.

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