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 stocks slip as Tadawul falls 1% amid broad market weakness
RIYADH: Saudi stocks fell sharply on Tuesday, with the Tadawul All Share Index closing down 108.14 points, or 1.03 percent, at 10,381.51.
The broader decline was reflected across major indices. The MSCI Tadawul 30 Index slipped 0.78 percent to 1,378.00, while Nomu, the parallel market index, fell 1 percent to 23,040.79.
Market breadth was strongly negative on the main board, with 237 stocks falling compared to just 24 gainers. Trading activity remained robust, with 164.7 million shares changing hands and a total traded value of SR3.19 billion ($850.6 million).
Among the gainers, SEDCO Capital REIT Fund led, rising 2.73 percent to SR6.77, followed by Chubb Arabia Cooperative Insurance Co., which gained 2.69 percent to SR20.20.
National Medical Care Co. added 1.72 percent to close at SR141.60, while Alyamamah Steel Industries Co. and Thimar Advertising, Public Relations and Marketing Co. advanced 1.57 percent and 1.13 percent, respectively.
Losses were led by Al Masar Al Shamil Education Co., which tumbled 8.36 percent to SR24.65. Raoom Trading Co.fell 6.75 percent to SR64.20, while Alkhaleej Training and Education Co. dropped 6.60 percent to SR18.12 and Naqi Water Co. declined 5.51 percent to SR54.00. Gulf General Cooperative Insurance Co. closed 5.44 percent lower at SR3.65.
On the announcement front, Chubb Arabia Cooperative Insurance Co. signed a multiyear insurance agreement with Saudi Electricity Co. to provide various coverages, expected to positively impact its financial results over the 2025–2026 period. The deal will run for three years and two months and is within the company’s normal course of business.
Meanwhile, Bupa Arabia for Cooperative Insurance Co. announced a one-year health insurance contract with Saudi National Bank, valued at SR330.2 million, covering the bank’s employees and their families from January 2026. Despite the sizable contract, Bupa Arabia shares fell 0.8 percent to close at SR137, weighed down by the broader market weakness.
In contrast, United Cooperative Assurance Co. revealed an extension of its engineering insurance agreement with Saudi Binladin Group for the Grand Mosque expansion in Makkah. The contract value exceeds 20 percent of the company’s gross written premiums based on its latest audited financials and is expected to support results through 2026. However, the stock came under selling pressure, ending the session down 4.51 percent at SR3.39.
