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Payments group Ebury has appointed investment bankers at Goldman Sachs to lead work on its planned £2bn initial public offering in London, as the fintech presses ahead with one of the rare listings set for the UK.
Goldman is among the banks set to lead the IPO that could come as soon as the first half of next year, according to people familiar with the matter.
Ebury, owned by Spanish bank Santander, could be valued at roughly £2bn, they added.
The fintech has settled on London after analysing various other options, in a rare vote of confidence for UK capital markets, which have suffered a dearth of listings.
A listing by Ebury would be closely watched by the rest of the fintech sector. Many companies have signalled their ambition to float but choppy market conditions amid high interest rates have put off investors.
Last year’s flotation of rival fintech CAB Payments was seen as a debacle that further spooked investors. The company experienced sharp valuation drops as its shares tumbled more than 70 per cent just three months after its disappointing IPO.
Ebury’s flotation will also been seen as a test for London capital markets, which have sought to boost their appeal by revamping their listing rules.
The London Stock Exchange has been hit by a series of high-profile departures as companies seek higher valuations abroad, and as relatively cheap UK-listed groups become attractive takeover targets.
Meanwhile, some larger fintechs, such as Swedish ‘buy now pay later’ Klarna, are preparing to list in New York.
Ebury offers services including cross-border payment, payroll transfers, currency risk management and business lending. It was founded in 2009 by Spanish engineers Juan Lobato and Salvador García.
It posted £16mn in earnings before interest, taxes, depreciation and amortisation, and £204mn in revenue, in the year to the end of April 2023.
Other London-based fintechs that have indicated that they are likely to publicly list their shares in coming years include Zopa, Revolut, Starling and Zilch. The last successful listing for the sector came with cross-border payment group Wise’s direct listing in 2021, which was hailed as a resounding success for the sector.
Goldman and a representative for Ebury both declined to comment.