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UK Fintech Wise plans to switch its main list to New York to attract more investors and encourage its valuation, bringing a new blow to the London market.
The company said it was listed on the great fanfare in London in 2021 at a valuation of around £9 billion, saying the move would increase appeal to US investors and bolster expansion plans in the world’s largest economy.
Announced the decision Thursday, Wise said: “We believe that adding major US listings will help accelerate our mission and bring significant strategic and capital market benefits to Wise and its owners.”
Wise’s shares, previously known as Transferwise, rose more than 6% in early trading, giving the group a market capitalization of over £11.8 billion.
Founded in London in 2010 by Estonians Christo Kelman and Tavet Hinrix, about a fifth of the company’s staff is based in the UK.
The decision to open it to London rather than New York was hailed as a rare coup in the UK market. The company said it intends to keep the list in London.
On Thursday, the US main list said it would raise awareness of its major market, the American brand, and give it “better access to the deepest and most fluid capital markets in the world.”
Wise started out as a remittance provider that undercuts banks, but expanded to offer investment products and debit cards of interest.
Wise said the decision to shift the main list to New York would go to shareholder votes and details of the proposed switch will be released around June 26th.
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The decision could encourage anxiety over the appeal of the London market, which has historically struggled to compete with Wall Street as several companies left London or made secondary listings.
In December, construction equipment rental group Ashtead announced plans to move the list to New York, saying the US is the largest market. Ashtead was the sixth FTSE 100 group since 2020 to abandon the Blue-chip index in favor of international venues. Others included owners of Paddy Power, Building Materials Group CRH, and plumbing products supplier Ferguson.
Wise’s announcement will raise $230 million the day after Glencore-backed Cobalt Holdings abolished plans to list in London this month.
Wise’s market capitalization has increased for almost four years in the London market, but the company has drawn scrutiny from regulators.
Last October, the Financial Conduct Authority fined Kearman £350,000 for violating the rules of conduct and failing to notify the regulator of “serious tax issues” but he was exempt from continuing as CEO.
