Cab Payments (LON: CABP) has disappointed its IPO investors by sliding 10% on its conditional debut. The full debut of the stock is set to occur on 11 July. The payments and forex giant decided to IPO in effort to boost UK capital markets.
The sell-off on the first day comes as no surprise as the UK markets are facing headwinds from the rising inflation. The benchmark FTSE 100 index fell to its fresh 3-month lows after sliding 25 points in the last trading session of the week.
As per the latest news, the holding company of Crown Agents Bank has raised £335 million pounds ($426M) in its IPO. The past few IPOs in the UK have been very disappointing. Consequently, many new tech firms are opting to get listed in the US.
Cab Payments IPO was priced at 335p. However, the share plummeted 10% on the very first day. This drop in the Cab Payments share price can be attributed to the track record of the recent UK IPOs as well as the current market conditions. The benchmark FTSE 100 index hit its lowest level since March 20 today.
After a disappointing first trading session, LON: CABP turned green on Friday. Till press time, the shares were changing hands at 311.7p, which is 2.89% higher than yesterday’s closing price. The technical analysis of such a new listing is not possible due to no price history.
Currently, Cab Payments share price forecast only depends on its ability to break above the IPO price of 335p. If the stock fails to reclaim this level in the next couple of days, then I expect more downside in the next weeks. The broader market conditions and the strength in the FTSE 100 index will also affect the price action in the coming week.
In the meantime, I’ll keep sharing the updated CAb Payments stock forecast and my personal trades on my Twitter where you are welcome to follow me.
This post was last modified on Jul 07, 2023, 13:27 BST 13:27