Shares in one of London’s biggest IPOs this year have crashed 82%

Three months ago, CAB Payments stumbled when it went public on the London Stock Exchange, its shares falling nearly 10% on their first day of trading on a market that has been starved recently of new listings.

The mood went from bad to worse Tuesday, however, when the fintech firm’s shares crashed nearly 74% after it issued a stark warning on revenues. The stock has now lost 82% of its value since listing.

The company, which provides foreign currency and cross-border payment services for businesses, sold shares worth $371 million to investors in July, making it London’s second-biggest initial public offering of the year, according to data provider Dealogic.

In a on Tuesday, CAB Payments said that it expects revenue this year would likely come in 17% below its previous guidance but still 20% up on 2022.

The firm attributed the weaker forecast to “changes to the market conditions” in some of its key markets, including the Nigerian naira, Central African franc and West African franc.

“These market conditions are compressing margins and reducing trading volume,” the company said.

It said that it was looking to cut costs to mitigate the impact on its profitability but added that it “anticipates that the majority of any revenue impact will flow through to the bottom line.”

The value of the naira has plunged over 90% since mid June to hit a record low of 884 against the US dollar on Monday as Nigeria grapples with a shortage of dollars, reported.

Individuals and businesses in the country have tried to source dollars on the black market, driving down the value of the naira, the outlet said.

CAB Payments’ stock was trading at almost 59 pence (72 cents) by 09.01 a.m. ET on Tuesday, compared with its closing price of £3.03 ($3.70) on July 6, the day of its IPO. The shares were issued at £3.35 ($4) a piece.

According to the firm’s website, it aims to connect “traditionally hard-to-reach regions to global financial infrastructure.”

Its biggest shareholder, with a 45% stake, is Merlin Midco, a subsidiary of Helios Investment Partners, a UK private equity firm that invests exclusively in Africa. BlackRock, the world’s largest asset manager, owns a 6.5% stake.

The rout represents for the global IPO market this year, which investors had hoped would bounce back strongly after an 18-month slump.