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Wed 15 May 2019 08:10 AM

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Finablr cuts IPO value amid weak investor demand, volatile markets

The new Finablr price implies a market value of $1.6bn versus an initial indicated value of as much as $2.3bn

Finablr cuts IPO value amid weak investor demand, volatile markets
Finablr’s share sale opened on May 1 and came in the wake of Dubai-based Network International Holdings Plc’s successful London listing, the largest IPO on the exchange so far this year.

Finablr, Abu Dhabi billionaire Bavaguthu Raghuram Shetty’s financial-services firm, slashed the price for its initial public offering after struggling to find investors for its London sale.

The holding company, whose businesses include Travelex Holdings Ltd. and the UAE Exchange Centre LLC, revised the offer price to 175 pence per share from an original range of 210 pence to 260 pence, according to a term sheet.

The new price implies a market value of 1.23 billion pounds ($1.6 billion) versus an initial indicated value of as much as 1.8 billion pounds.

The sale now has demand for all shares on offer, according to an update sent to investors. The company had extended the offer period by a day, people familiar with the matter said, asking not to be identified because the process is private.

It’s been a tough week for IPOs as plunging markets made potential buyers nervous. Uber Technologies Inc. priced its share sale toward the bottom of its marketed range, and the stock has plummeted almost 18 percent since trading began on Friday.

Finablr’s share sale opened on May 1 and came in the wake of Dubai-based Network International Holdings Plc’s successful London listing, the largest IPO on the exchange so far this year.

Shetty set up Finablr last year to consolidate his financial services brands. The firm handled more than 150 million transactions in 2018, according to its website. Shetty is also the founder of NMC Health Plc, which trades in London.

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