Fintech business CAB Payments has set the price for its upcoming IPO (initial public offering) at 335p per share, implying a market value of £851 million when conditional trading starts on 6 July 2023. It should join the FTSE 250 index later this year based on that valuation.

IPOs in London have slowed to a crawl this year with companies scared off from selling shares to investors amid a catalogue of challenges that have elevated volatility. Earlier in June, Turkey-based industrial WE Soda scrapped its $7.5 billion IPO, blaming ‘extreme investor caution’ in the UK.

According to consultancy EY, just five companies listed shares on the UK stock market in the first three months of 2023, raising just £81 million from investors.

‘The London IPO market continues to experience the extremely challenging conditions witnessed in 2022,’ said Scott McCubbin of EY in its first quarter report. ‘There remain strong headwinds including the war in Ukraine, high energy and commodity prices, and wider inflationary pressures.’

CAB Payments offers business-to-business cross-border payments and foreign exchange. ‘CAB Payments has a differentiated business model with an attractive economic profile marked by profitability, cash generation and strong margins, and it benefits from structural growth drivers,’ said chief executive Bhairav Trivedi, who used to run Network International (NETW) which recently agreed a £2.2 billion takeover by Canadian investment group Brookfield Asset Management.

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