Wise set to go public via direct listing in London
Wise, formerly known as Transferwise, journey to becoming a publicly traded company is getting close, according to sources.
Wise to list in London
In an article, Sky News said that Wise was nearing closer to its initial public offer (IPO). The report cited sources inside the company who said that the management is waiting for documents from regulators. This IPO will cement it as one of the leading fintech company in the UK.
The company has already raised more than $1.3 billion in funding that valued it at more than $5 billion. However, according to sources, the initial public offer will value the company at more than 9 billion pounds. This will make it the biggest London IPO in years.
At the same time, some sources say that the company could avoid using a traditional IPO process where it issues new shares. Instead, it may consider using the direct listing approach that has been used before by companies like Spotify, Asana, and Palantir Technologies.
Meanwhile, according to Sky, the company will use a dual-class share structure that has become a hot issue in the UK. Indeed, shares of Deliveroo, once a hot-startup have crashed after it launched its IPO. Institutional investors like Schroders shunned the company because of its dual structure.
Booming time for fintech
The Wise listing comes at a time when the fintech industry is booming. Wise has added more than 10 million customers from around the world and it is processing billions of dollars every year. The firm has also added more products like its multi-currency account that enables people to simplify their finances.
Recently, other money transfer companies have also expressed their hope of going public. WorldRemit, another London company will go public in New York. And last week, Remitly filed to go public in New York in a deal that will value it at more than $2 billion valuation.
