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UK fintech Wise plans to switch its primary listing to New York in an attempt to attract more investors and improve liquidity in its shares, dealing a fresh blow to the London market.
The company, which listed to great fanfare in London in 2021 at an almost £9bn valuation, said the move would increase its appeal to US investors and enhance its expansion plans in the world’s biggest economy.
Announcing the decision on Thursday, Wise said: “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.”
Shares in Wise, previously known as TransferWise, climbed as much as 12 cent in morning trading in London, giving the group a market capitalisation of £12.5bn.
Founded in London in 2010 by Estonians Kristo Käärmann and Taavet Hinrikus, about a fifth of the company’s staff are based in the UK.
Its decision to go public in London in 2019 rather than New York was hailed as a rare coup for the UK market. The company said on Thursday that it intended to retain a listing in London.
Kristo Käärmann, chief executive, said the company remained “fully committed” to the UK but the decision to shift to the US boiled down to gaining access to the world’s deepest capital markets.
“This means more people getting access to our shares and greater liquidity,” he said.
The US listing process is expected to take about a year, said Emmanuel Thomassin, chief financial officer.
As an alternative, Wise’s board had considered whether to make changes to its articles of association that would have allowed it to enter the FTSE 100. But switching to a US primary listing would make it ineligible for inclusion in London’s blue-chip index.
Wise’s plans were unveiled alongside strong revenue and profit growth for the 2024-2025 financial year, driven by a 21 per cent increase in active customers to 15.5mn.
Underlying profit before tax rose 17 per cent to £282mn in the year to the end of March, with revenue also up 15 per cent on 2024 to £1.2bn. Wise said it expected to maintain its guidance of an underlying profit-before-tax margin of 13-16 per cent for the 2025-2026 financial year and expected this “to be around the top of this range”.
Wise began as a provider of money transfers that undercut banks, but has expanded to offer interest-yielding investment products and a debit card.
The company said the decision to shift its primary listing to New York would be put to a shareholder vote.
The announcement comes as the Trump administration moves cut red tape on business, but Wise said deregulation did not influence its listing decision.
Thomassin said valuation factors were “not really the driver” for the US shift but rather unlocking access to institutional and retail investors.
The decision is likely to fuel anxieties over the appeal of the London market, which has historically struggled to compete with Wall Street and suffered setbacks in recent years as several companies have either exited London or made it their secondary listing.
Construction equipment rental group Ashtead in December announced plans to move its listing to New York, saying that the US was its biggest market. Ashtead was the sixth FTSE 100 group to have ditched the blue-chip index in favour of overseas venues since 2020. Others included Flutter, owner of Paddy Power, building materials group CRH and plumbing products supplier Ferguson.
Deliveroo, which listed in 2021, is meanwhile leaving the London market after accepting a £2.9bn takeover last month from DoorDash.
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Wise’s announcement came a day after Glencore-backed Cobalt Holdings scrapped plans for a London listing this month, which would have raised $230mn.
While Wise’s market capitalisation has increased during its almost four years on the London market, the company has drawn scrutiny from regulators.
Last October, the Financial Conduct Authority fined Käärmann £350,000 for breaching conduct rules and failing to notify the regulator of “significant tax issues”, but cleared him to carry on as chief executive.
