Wise to move primary listing to US in new setback for London

Bengaluru — Money transfer company Wise on Thursday said it planned to move its primary listing to the US from London, the latest British company to quit the London stock market in search of a bigger valuation elsewhere.

Wise, which made its debut on the London market in 2021, said in April it was exploring its listing options but news of the move to the US surprised analysts. The company’s shares rallied more than 8%, giving it a market value of more than £12bn.

The decision is another blow for Britain’s hopes of reviving the London market, where the appeal of deeper, better performing markets elsewhere has encouraged companies to switch their listing while fewer new firms have joined.

CEO and co-founder Kristo Kaarmann said Wise’s move was due to the US having the world’s deepest and most liquid capital markets, making it easier for investors to buy shares in the company.

Secondary listing

Shares of the fintech company rose 8.9% to 1,179 pence. They have risen about 40% in the past 12 months but that follows years in which the shares traded below their 2021 listing price.

Wise said it would maintain a secondary listing in the British capital.

The UK has been trying to make London a more attractive destination for companies to list and raise funds, and last year made major changes to its rules for company listings, but is still struggling to attract initial public offerings.

In recent months, Unilever chose Amsterdam over London or New York for the primary listing of its ice-cream business while Singapore-headquartered fast-fashion firm Shein has been considering Hong Kong after plans for a London IPO encountered Chinese regulatory hurdles, according to sources.

Made effort

Metals investor Cobalt Holdings, backed by Glencore , also scrapped its plans for a London IPO on Wednesday.

“The government has definitely made an effort to align to the US or other large capital markets in terms of the rules and set-ups that are common here … so anything that can be done in the US … can be done in the UK as well, so that is not the reason,” said Kaarmann.

“But … we … have to accept the reality of where the world’s capital is concentrated.”

British peer Revolut, which competes with Wise on pricing and features, has also been aggressively pushing into the US.

Wise also reported its annual earnings, in which underlying pretax profit rose 17% to £282.1m in the year ending March 31.

Wise said it would continue to invest in the UK, where 20% of its staff and most of its executive team are based.

Reuters