Posted on 10/24/2023 9:10:18 AM PDT by Diana in Wisconsin
Three months ago, CAB Payments stumbled when it went public on the London Stock Exchange, its shares falling nearly 10% on their first day of trading on a market that has been starved recently of new listings.
The mood went from bad to worse Tuesday, however, when the fintech firm’s shares crashed nearly 74% after it issued a stark warning on revenues. The stock has now lost 82% of its value since listing.
The company, which provides foreign currency and cross-border payment services for businesses, sold shares worth $371 million to investors in July, making it London’s second-biggest initial public offering of the year, according to data provider Dealogic.
In a statement on Tuesday, CAB Payments said that it expects revenue this year would likely come in 17% below its previous guidance but still 20% up on 2022.
The firm attributed the weaker forecast to “changes to the market conditions” in some of its key markets, including the Nigerian naira, Central African franc and West African franc.
“These market conditions are compressing margins and reducing trading volume,” the company said.
It said that it was looking to cut costs to mitigate the impact on its profitability but added that it “anticipates that the majority of any revenue impact will flow through to the bottom line.”
(Excerpt) Read more at channel3000.com ...
Socialist Democrats spreading the misery around the globe. ;)
“The rout represents another disappointment for the global IPO market this year, which investors had hoped would bounce back strongly after an 18-month slump.”
Why would anyone need the silly company when they have Bitcoin?
Yep, what the world needs is another PayPal, Zelle, Venmo, Applepay, Snap, Google pay, Alipay, etc, etc.
About 25 years ago I looked into the average rate of return on IPOs. It made me decide to stay away from them.
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