Goldman Sachs to Head Ebury’s UK IPO

Payments group Ebury has selected investment bankers at Goldman Sachs to handle its planned £2 billion initial public offering (IPO) in London. This fintech firm is pushing ahead with one of the few listings set for the UK.

Goldman Sachs is one of the banks expected to lead the IPO, which could happen as early as the first half of next year. The Spanish bank Santander owns Ebury, which might be valued at about £2 billion.

Ebury Chooses London, Showing Confidence In UK Capital Markets

After looking at several other options, Ebury chose London, marking a rare show of trust in UK capital markets lacking new listings.

Ebury’s listing would attract a lot of attention from the fintech sector. Numerous companies intend to float, but the turbulent market and high interest rates have made investors hesitant.

Last year’s listing of competitor fintech CAB Payments was seen as a failure that further alarmed investors. The company suffered a sharp decline in value, with its shares dropping more than 70 percent only three months after its poor IPO performance.

The flotation of Ebury will be viewed as a challenge for London’s capital markets, which have aimed to enhance their appeal by updating their listing rules.

The London Stock Exchange has faced a wave of high-profile exits as companies look for better valuations overseas. At the same time, relatively inexpensive UK-listed firms have become tempting targets for takeovers. Furthermore, some big fintech companies, like the Swedish’ buy now, pay later firm Klarna, are set to launch in New York.

Ebury provides cross-border payments, business loans, currency risk management, and payroll transfers. It was launched in 2009 by Salvador García and Juan Lobato, both Spanish engineers.

Ebury Reported Earnings Of £16 Million In The Fiscal Year Ending April Last Year

In the fiscal year that ended April last year, Ebury said it received £16 million in earnings. However, this value was before depreciation, amortization, taxes, and interest. The company also reported £204 million in revenue for the period.

Other fintech companies based in London are expected to list their shares in the next few years, including Zopa, Zilch, Starling, and Revolut. The last successful listing in the sector was Wise’s direct listing in 2021. It was considered a big success. Goldman and a spokesperson for Ebury chose not to comment.

Ebury continues to offer international cash management solutions. Thanks to its new technology and unmatched skills, the company provides expert advice and top-notch customer service, typically only available to the bank’s top clients. It wants to make international finance easy and available for all businesses.