UK-based fintech company Ebury is reportedly planning to go public on the London Stock Exchange (LSE) in 2025, targeting a valuation of up to £2 billion. The company, which specializes in international payments and collections, is currently in discussions with several banks to support its initial public offering (IPO). This move could significantly impact both Ebury and the LSE, especially amidst a challenging market environment.
Background
Founded in 2009 by Juan Lobato and Salvador García, Ebury has grown rapidly, offering a range of financial services including international payments, foreign exchange, trade finance, and cash management. In 2019, Spanish banking giant Santander acquired a 50.1% stake in Ebury for £350 million, later increasing its stake to 54%. This partnership has been instrumental in Ebury’s expansion into new markets, including Latin America and Asia.
Over the years, Ebury has achieved significant milestones:
- Expanded to new geographies such as Stockholm, Santiago, Johannesburg, Montreal, Shanghai, Shenzhen, and Leon.
- Increased transaction volumes and customer base significantly.
- Acquired businesses like Bexs in Brazil and Prime Financial Markets in Africa to strengthen its global presence.
Financial Performance
Ebury’s financial performance has been robust, positioning it well for the planned IPO. For the fiscal year ending April 2023, the company reported revenues of £204 million, an 85% increase from the previous year. Transaction volumes also saw a substantial rise, reaching £25.5 billion. The company managed to reduce its operating losses significantly, reflecting its strong operational leverage and revenue growth.
Ebury’s focus on enhancing its product offerings, such as improving its API and launching more complex foreign exchange solutions, has contributed to its financial success. The company has also invested in expanding its global operations, opening new offices and strengthening its compliance, risk, and HR functions across regions.
In summary, Ebury’s planned IPO is a strategic move to capitalize on its strong financial performance and ambitious growth plans. The listing is expected to provide a much-needed boost to the London Stock Exchange and position Ebury for further expansion and market leadership in the fintech sector.
IPO Plans
Ebury has officially announced plans to go public on the London Stock Exchange (LSE) in 2025, aiming for a valuation of up to £2 billion. The company has hired Perella Weinberg Partners to assist in the IPO process. Ebury’s CEO, Juan Lobato, has expressed that this move is a natural progression for the company, aligning with its long-term goals and shareholder agreements. The company may also consider a capital raising before the IPO to further bolster its financial standing.
Market Context
The planned IPO comes at a crucial time for the London Stock Exchange, which has experienced a decline in major listings and investor confidence. In 2023, only 23 companies went public on the LSE, a significant drop from previous years. An IPO of Ebury’s scale could provide a much-needed boost to the market, demonstrating the viability of London as a hub for fintech companies. This move also reflects broader trends in the financial sector, where traditional banking institutions and fintech companies are increasingly collaborating to offer comprehensive financial services.
Challenges and Considerations
Despite the optimistic outlook, Ebury faces several challenges in its IPO journey. The global fintech sector has seen fluctuating investor interest, influenced by economic conditions such as higher interest rates and reduced funding availability. Additionally, Ebury must continue to demonstrate strong financial performance and operational stability to attract investors. The company’s recent financial results have shown significant growth, but sustaining this momentum will be critical as it prepares for the public offering.
In summary, Ebury’s planned IPO is a strategic move that underscores its growth ambitions and potential impact on the fintech sector and the London Stock Exchange. However, the company must navigate market challenges and investor expectations to ensure a successful public debut.
