Monzo chiefs weigh up UK and US IPO options

credit: Ink Drop / Shutterstock
credit: Ink Drop / Shutterstock

UK neobank Monzo is reportedly looking to go public with an initial public offering (IPO), but some of its executives are going back-and-forth on whether the listing should be in the UK or the US. 

A report from The Financial Times yesterday (21 January) revealed that CEO TS Anil is on board with IPO plans and is pushing for the listing to be held in the US. However, there are those on the Monzo board who believe it would be best to hold it in its home country of the UK. 

It is believed that Monzo has been in discussions with relevant bankers over the IPO that if finalised, would happen at the end of the year. The digital bank is currently valued at $5bn. 

One source told The Financial Times that despite looking to become “IPO ready” this year, the listing may not happen until next year despite pushing along with preparations. Another source highlighted current and future market conditions and whether it would be suitable for an IPO this year. 

If Monzo opts for a US listing, it would be quite a significant year for fintechs going public, with Swedish Buy Now, Pay Later leader Klarna also gearing up for an IPO across the Atlantic. 

Klarna has already submitted a draft registration statement with the US Securities and Exchange Commission (SEC) after snubbing the London Stock Exchange

A similar move from Monzo would deal a great blow to the London Stock Exchange and potentially the overall London fintech sector, which has been a world leader when it comes to innovation and growth. 

This was acknowledged in The Financial Times report, as companies who went public in the UK last year raised the lowest amount from investors on record, according to data from Dealogic

Whether Monzo lists in the UK or the US, it may have to contend with other British fintechs looking to go public also. There has been heavy speculation that Revolut is looking to go public after recently offloading upwards of $1bn to investors as part of a secondary share sale. 

Despite Monzo’s incremental growth over the past several years, Revolut still stands as the UK and Europe’s leading digital bank, with 10 million UK customers and 45 million globally.