Ebury Plans £2 Billion IPO in London, Signaling Renewed Interest in UK Capital Markets

Ebury, a payment services company owned by Santander, is moving forward with plans for a £2 billion initial public offering (IPO) in London. The firm has hired Goldman Sachs to lead this listing, which could take place as early as the first half of 2025. This potential IPO represents a significant moment for UK capital markets, as listings have been scarce in recent times due to unfavorable market conditions.

The decision to list in London reflects Ebury’s commitment to the UK market, despite many companies seeking to go public elsewhere. The UK capital markets have been struggling after a series of high-profile IPO failures that have left investors cautious. Notably, the unsuccessful float of CAB Payments last year, which saw its shares plummet by over 70%, has made investors wary, highlighting the risks involved. Ebury’s listing could serve as a barometer for other fintech companies contemplating an IPO.

Ebury’s business model includes various services such as cross-border payments and business lending, making it a key player in the fintech sector. The company reported £204 million in revenue with £16 million in earnings before interest, taxes, depreciation, and amortization for the year ending in April 2023. With other fintechs like Zopa and Revolut also indicating plans to go public in the coming years, Ebury’s move might reignite interest in UK listings. The London Stock Exchange has been making efforts to attract new listings by changing its rules and promoting a more favorable environment for companies looking to raise funds.