Investors accuse CAB Payments of limited risk disclosure in IPO prospectus

Share price down more than 76%

CAB Payments investors have lamented the limited risk disclosure in the company’s IPO prospectus, following the nosedive of its shares since its stock exchange debut this summer.

The B2B cross-border payments and foreign exchange services provider's IPO was London's biggest this year, with a valuation of £851m, raising £335m from investors. According to data from the London Stock Exchange, the company's shares are down 76.5% since its float on 6 July. The most significant drop took place on 24 October, when shares fell from 216.5 pence to 60.8 pence after CAB was forced to slash revenue expectations due to central bank interventions in several African currencies. Fidelity Investments and Jupiter among fund houses hit by CAB Payments sell-off RC Brown and Po...