Payments company Ebury has appointed Goldman Sachs to lead its upcoming GBP 2 billion initial public offering (IPO) in London. The IPO is expected to take place in the first half of 2025, and in the fiscal year ending April 2023, Ebury reported GBP 204 million in revenue and GBP 16 million in earnings before interest, taxes, depreciation, and amortisation.

Ebury is owned by Spanish bank Santander, but it chose London for the IPO after considering other locations, signalling a vote of confidence in the UK capital markets, which have seen a decline in new listings according to the Financial Times. According to the same source, several other London-based fintech companies, including Zopa, Revolut, Starling, and Zilch, have indicated plans to go public in the future. The most recent successful listing in the sector was Wise’s direct listing in 2021.

The risks of Ebury's IPO The success of Ebury’s IPO will be closely monitored, as many fintech firms have deferred their public offerings due to challenging market conditions and high interest rates. The FT reports that the previous year's flotation of Ebury competitor CAB Payments was poorly received, with its stock dropping over 70% shortly after the IPO. Ebury’s potential listing will also serve as a test for the London Stock Exchange, which is seeking to enhance its attractiveness through changes to listing rules.

The exchange has faced a series of high-profile exits as companies seek better valuations abroad or become takeover targets. In contrast, larger fintech firms such as Klarna are preparing to list in New York, with Morgan Stanley, JPMorgan, and Goldman Sachs being expected to lead the process. Klarna's executives and advisers believe that the IPO market will recover by 2025, which influenced their decision to pursue the listing.

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