International money management company Wise is moving its primary listing from the London Stock Exchange (LSE) to the US.
Wise announced in its 2024 financial year report that it will transfer its primary listing from the equity shares category of the LSE to an unnamed US stock exchange. Announced on June 5, Wise said it would maintain a secondary listing in London, enabling Wise stocks to be traded in both the US and UK.
The new listing arrangements are expected to include a structure which aligns with US market practices, including Wise US-listed tech peers, which the company believes allows them to “remain laser-focused” on delivering its mission.
“We believe the addition of a primary US listing would help us accelerate our mission and bring substantial strategic and capital market benefits to Wise and our Owners,” said Kristo Käärmann, Co-Founder and CEO,
“These include helping us drive greater awareness of Wise in the US, the biggest market opportunity in the world for our products today, and enabling better access to the world’s deepest and most liquid capital market.
“A dual listing would also enable us to continue serving our UK-based Owners effectively, as part of our ongoing commitment to the UK. The UK is home to some of the best talent in the world in financial services and technology, and we will continue to invest in our presence here to fuel our UK and global growth.”
Wise confirmed the reason behind the US primary listing would provide benefits for shareholders and a view to grow within the market.
The company will expand the pool of domestic and retail investors within the country who had not previously been able to invest. Wise believes this move will help propel its global ambitions as being one of the predominant money transfer payment systems in the world.
Another blow for UK market
The news of Wise moving its primary listing away from the UK market serves as the latest blow to the country’s capital market and serves as another example of payment and fintech companies viewing the US as a more valuable market.
Klarna has opted for a US IPO over an LSE listing, although the Swedish Buy Now, Pay Later firm has halted plans due to fluctuating market conditions.
While Wise has reiterated it will remain in the UK with a secondary listing, the company’s decision to move its primary listing indicates that Wise sees more profitability and growth opportunities in the US than the UK.
The industry will be watching closely to see if two of the UK’s homegrown success stories, Revolut and Monzo, move to the US for an IPO, with both digital banks reportedly in discussions to go public.
While Monzo Chief TS Anil has been reported to favour a US listing over the Board’s UK preference, he recently spoke this week at Money 20/20 to downplay IPO plans as Anil stated “that’s just not our focus right this second”.
He said: “We will be a great public company one day. We have the gift of choice, we’re well capitalised, we’re capital-accerative. We understand why therefore people ask us all the time and speculate about it (IPO), but that’s just not our focus right this second. We’re focused on scaling the business.”
Fintech investment in the UK has undergone a down period due to various macroeconomic market conditions and investor confidence waning. According to KPMG, UK fintech investment fell by 27% last year to $9.9bn from $13.6bn in 2023.
