ABU DHABI: UAE-based payments and foreign exchange company Finablr is considering a stock market flotation in London that could raise at least $200 million to finance expansion and cut debt.
Finablr, whose brands include UAE Exchange, Travelex Holdings and Xpress Money, said on Tuesday it could sell a mix of new and existing shares totalling at least 25 percent of its equity, though a final decision had not been made to proceed.
The plan comes after its rival Network International’s initial public offering (IPO) drew strong demand in a deal that could raise £870 million ($1.1 billion). Network is set to price at 435 pence per share, a term sheet showed on Monday.
The two deals could end a drought in the European IPO market, which has seen proceeds slump to $292 million in the first three months of 2019 from $13.9 billion a year ago, Refinitiv data shows.
Payments processing assets have become highly sought after as consumers worldwide switch to digital from cash, commanding impressive valuations for companies in the sector.
Finablr CEO Promoth Manghat told a conference call it would be premature to talk about proceeds or the exact number of existing shares to be sold, since the company had not made a final decision to proceed with the IPO.
Sources had earlier told Reuters the company intends to raise a total of about $500 million from the offering.
Finablr’s net debt stood at $564.2 million at the end of 2018, about 2.5 times core earnings or EBITDA, a level Manghat said the company is comfortable with.
The group’s adjusted EBITDA for 2018 was $210.4 million.
The Finablr network has a global reach spanning more than 170 countries and manages $114.5 billion in volumes for its clients as of December, the prospectus showed.
Its biggest markets are India, Pakistan, Bangladesh and the Philippines. UAE Exchange bought Travelex, the world’s largest foreign exchange specialist, in 2016 for £800 million ($1 billion).
Founder B.R. Shetty took another company he founded, NMC Health, public on the London Stock Exchange in 2012.
JPMorgan, Barclays and Goldman Sachs are global coordinators for the deal. Bookrunners include Bank of America Merrill Lynch, EFG Hermes and Numis. Evercore is acting as financial adviser.
UAE’s Finablr mulls London IPO
UAE’s Finablr mulls London IPO
- Flotation could raise at least $200 million to finance expansion and cut debt
- The Finablr network has a global reach spanning more than 170 countries and manages $114.5 billion in volumes for its clients
Closing Bell: Saudi benchmark index closes lower at 10,540
RIYADH: Saudi equities ended Wednesday’s session lower, with the Tadawul All Share Index falling 55.13 points, or 0.52 percent, to close at 10,540.72.
The sell-off was mirrored across other indices, with the MSCI Tadawul 30 Index retreating 5.79 points, or 0.41 percent, to close at 1,393.32, while the parallel market Nomu slipped 74.56 points, or 0.32 percent, to 23,193.21.
Market breadth remained firmly negative, as decliners outpaced advancers, with 207 stocks ending the session lower against just 51 gainers on the main market.
Trading activity moderated compared to recent sessions, with volumes reaching 123.5 million shares, while total traded value stood at SR2.72 billion ($725.2 million).
On the sectoral and stock level, Al Moammar Information Systems Co. led the gainers after surging 9.96 percent to close at SR172.30, extending its rally following a series of contract announcements tied to data center and IT infrastructure projects.
Al Masar Al Shamil Education Co. climbed 4.89 percent to SR27.48, while Naqi Water Co. advanced 3.36 percent to SR58.50. Al Yamamah Steel Industries Co. and Al-Jouf Agricultural Development Co. also posted solid gains, rising 3 percent and 2.86 percent, respectively.
Losses, however, were concentrated in industrial names. Saudi Kayan Petrochemical Co. fell 3.67 percent to SR4.73, while Makkah Construction and Development Co. slid 3.44 percent to SR80.
Saudi Tadawul Group Holding Co. retreated 3.28 percent to SR147.50, weighed down by broader market weakness, and Saudi Cable Co. declined 3.18 percent to SR143.
Alkhaleej Training and Education Co. rounded out the top losers, shedding just over 3 percent.
On the announcement front, BinDawood Holding announced the signing of a share purchase agreement to acquire 51 percent of Wonder Bakery LLC in the UAE for 96.9 million dirhams, marking a strategic expansion of its food manufacturing footprint beyond Saudi Arabia.
The acquisition, which remains subject to regulatory approvals, is expected to support the group’s regional growth ambitions and strengthen supply chain integration.
BinDawood shares closed at SR4.68, up 0.43 percent, reflecting a positive market reaction to the overseas expansion move.
Meanwhile, Al Moammar Information Systems disclosed the contract sign-off for the renewal of IT systems support licenses with the Saudi Central Bank, valued at SR114.4 million, inclusive of VAT.
The 36-month contract is expected to have a positive financial impact starting from fourth quarter of 2025, reinforcing MIS’s position as a key technology partner for critical government institutions. The stock surged to the session’s limit making it the top gainer.
In a separate disclosure, Maharah Human Resources confirmed the completion of the sale of its entire stake in Care Shield Holding Co. through its subsidiary, Growth Avenue Investments, for a total consideration of SR434.3 million.
The transaction involved the transfer of 41.36 percent of Care Shield’s share capital to Dallah Healthcare, with Maharah receiving the full cash proceeds.
Despite the strategic divestment, Maharah shares closed lower, ending the session at SR6.12, down 1.29 percent.
