Shares in CAB Payments Holdings PLC (LSE:CABP) rose 9% on Wednesday after the company announced regulatory approval to open a representative office in New York City, marking a significant step in its global growth strategy.
The approvals, granted by both the Federal Reserve and the New York State Department of Financial Services, allow Crown Agents Bank, a subsidiary of the group, to establish a licensed presence in the United States for the first time.
The new office will act as a regional hub, ing existing clients and helping to drive new business across the Americas.
It is also expected to strengthen ties with US dollar clearing partners and enhance foreign exchange and payment services across Central and South America.
The move builds on CAB’s efforts to expand its FX and cross-border payments network globally, complementing its existing operations in the UK and Europe.
The shares rose 3.64p to 44.89p.
Peel Hunt, reiterating its 'hold' recommendation, said: "While this is a strategically positive development, we believe a sustained re-rating in CAB Payments’ shares will depend on consistent execution and a return to reliable revenue growth."
