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UAE's Finablr set to launch London IPO on Tuesday - sources

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By Reuters

By Stanley Carvalho and Saeed Azhar

ABUDHABI/DUBAI (Reuters) – United Arab Emirates-based payments and foreign exchange company Finablr is set to launch its initial public offering in London on Tuesday in a deal that could raise about $500 million (382.70 million pounds), three sources familiar with the matter said.

The plan comes after its rival firm Network International’s IPO drew strong demand from investors in a potential deal that could value the company at $3 billion.

Finablr, the holding company for businesses including UAE Exchange, Travelex Holdings and Xpress Money, plans to sell between 25 and 30 percent of its shares, which could raise around $500 million, sources said.

Investor meetings will be held in the United States and Europe, they added.

Finablr declined to comment.

JPMorgan, Barclays and Goldman Sachs are the global coordinators for the deal. Bookrunners include Bank of America Merrill Lynch, EFG Hermes and Numis.

The two deals could end a drought in the European IPO market, which has seen proceeds dip to $292 million in the first three months of 2019 from $13.9 billion made in the same period of last year, Refinitiv data shows. 

Payments processing assets remain highly sought-after as consumers worldwide switch to digital from cash, commanding impressive valuations and often achieving high returns for investors.

The Finablr network has a global reach spanning over 160 countries and manages nearly $100 billion in volumes for its clients, according to its website.

Its biggest markets are India, Pakistan, Bangladesh and the Philippines. UAE Exchange bought Travelex, the world’s largest foreign exchange specialist, in 2016 for 800 million pounds ($1.05 billion).

($1 = 0.7653 pounds)

(Reporting by Stanley Carvalho and Saeed Azhar; Editing by Jan Harvey)