Wise gears up for potential direct listing on London Stock Exchange

UK FinTech juggernaut Wise has revealed it seeking the first direct listing of a technology firm on the London Stock Exchange (LSE).

While it was previously expected Wise would undertake an IPO, the company has now claimed it intends to seek a direct listing as this is a ‘fairer, cheaper and more transparent way for Wise to broaden its ownership, in support its mission to move money around the world faster, cheaper and more conveniently’.

The company will apply for admission by way of a direct listing of the shares to standard listing segment of the official list of the Financial Conduct Authority and to trading on the LSE’s main market. It intends to publish a registration document later today for admission to the exchange.

Wise also remarked that the direct listing is possible due to its ‘sustainable’ approach to growth. The firm highlighted that it has been profitable since 2017, with the company achieving 54% revenue compound annual growth rate over the last three years – reaching £421m of revenue in full-year 2021. Wise has no plans to raise primary capital.

The firm is also planning to create a customer shareholder program – OwnWise – that will reward customers who join as shareholders. The program is open for pre-applications in the UK and also gives customers the chance to receive bonus shares in Wise among other benefits.

Existing investors in the businesses’ team – including current and previous employees who maintain options and shares – will also be offered time-limited enhanced voting shares to support the firm as it moves to its listed position.

Wise CEO and co-founder Kristo Käärmann said, “Wise is used to challenging convention, and this listing is no exception. We’re ten years into building a new way to move money around the world – faster, cheaper, easier and completely transparent. A direct listing allows us a cheaper and more transparent way to broaden Wise’s ownership, aligned with our mission.

“We’re fixing a huge, structural problem on a global scale, and one which requires enormous discipline to solve. Operating sustainably, with a profit margin, helps us track our journey to lower prices for customers as we scale and remove costs. By bringing transparency and fairness into how we price our products, we’ve found a common ground of creating massive value for our customers, and also for our shareholders.

“Bringing in the people we serve as owners of Wise is something I’ve long wanted to do. Recently, we welcomed our first customer owners by gifting shares to a group of 1,800 active customers. Because of the long-term nature of our mission, we’ve always chosen shareholders with an understanding of, and passion for, the problem we’re solving. A direct listing, combined with a widely available dual class share structure, allows us to bring customers and other like-minded investors into our shareholder base, whilst keeping the focus on our deeply ingrained mission as we grow at speed.”

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