The news: Wise, one of just a handful of tech stocks listed on the London Stock Exchange (LSE), will switch its primary listing to the US in attempts to attract more investors and plump up its valuation.
The numbers: The fintech first listed on the LSE in 2021 at an almost £9 billion ($18.75 billion) valuation.
Shares in Wise climbed over 6% in early trading on Thursday after the listing news broke, pushing its market capitalisation to over £11.8 billion.
The context: Formerly known as TransferWise, Wise was founded in 2011 to provide money transfer services at rates that undercut banks and has since expanded into interest-gaining investment products and offers a debit card.
Wise co-founder and CEO Kristo Käärmann said on Thursday that the company sees the addition of a primary US listing would help accelerate its mission and “bring substantial strategic and capital market benefits.”
The company added that benefits would include greater brand awareness in the US, which it sees as the biggest market opportunity in the world for its products, as well as “enabling better access to the world’s deepest and most liquid capital market.”
A dual listing will also allow Wise to continue serving its UK-based investors. Käärmann said that the UK is home to some of the best talent in the world in financial services and technology “and we will continue to invest in our presence here to fuel our UK and global growth.”
Around one fifth of Wise staff are currently based in the UK.
The LSE departure is the second hit for the bourse this week, after Glencore-backed Cobalt Holdings announced it would not proceed with its planned London IPO. The company said on Wednesday, ahead of its planned debut on Thursday, that it had planned to raise around US$230 million to make an initial purchase of cobalt from Glencore, and pay for storage costs.
“The company intends to explore options, including possibly funding the business privately,” Cobalt Holdings told Bloomberg.