Tuesday, August 3, 2021
HomeNewsWise listing boosts London stock market - News

Wise listing boosts London stock market – News

FOr fintech The company, Wise (formerly TransferWise), has created a refreshing analog. Two Estonians living in London, Kristo Kaarmann and Taavet Hinrikus, met at a party in 2007. Hinrikus was paid in an Estonian clone that he exchanged for pounds every month. Kerman was converting his Sterling salary into a clone to repay his mortgage home. Both were fed up with bank charges. So they devised a workaround. Each month, Mr. Kerman added to Mr. Hinriks’ UK account, and Mr. Hinriks did the same for Mr. Kerman’s Estonian account, setting the amount according to the exchange rate in the mid-market. Of course, there are no fees.

Listen to this story

Enjoy more audio and podcasts with iOS Or Android..

Founded in 2011 to provide similar services to others, the business currently has 10 million customers. Published on the London Stock Exchange on July 7th (LSE), The starting valuation is £ 8 billion ($ 11 billion). Befitting a company set up to eliminate transaction fees, it did so without an initial public offering (IPO), Therefore, avoid the high fees that banks charge institutional investors to sell newly coined shares. Such direct listings are becoming more and more common in American tech companies. Spotify, Slack, Palantir and Coinbase have all used them in recent years. But Wise is the only company in London that has completed one. LSE itself.

Wise ratings will support founders who have more than doubled in the last 12 months. City executives whose income depends on London’s list may also have a sigh of relief. Earlier this year, Deliveroo, an eight-year-old food delivery company, IPO.. Many of the city’s largest fund managers refused to participate, with stock prices dropping 26% on the first day of trading. This blunder has raised concerns that the UK stock market will not be well accepted by the star tech companies of the century.

Wise’s warmer welcome is part of a sign of greater confidence in its business model. It’s been profitable since 2017, but Deliveroo hasn’t managed to do it yet. There are no nasty questions about the employment situation of workers. Deliveroo IPO The document contained warnings regarding legal investigations in the United Kingdom, France, the Netherlands and Spain. Wise’s business model is very scalable, unlike sending food to drivers. And the road to that growth is clear. We have processed £ 54 billion in international cash transfers in the last fiscal year, but we believe we have processed only £ 1 out of £ 40 that individuals have sent across borders. Meanwhile, it diverges to serve small businesses, sending £ 7 trillion annually across national borders.

Still, the animal spirits are what they are, and a successful list boosts more hope in the city. A common arrangement among technology founders is that over the next five years, Mr. Carman’s shares will be LSE.. Such a double-class structure has been criticized in the past. But when city investors were offered shares in a profitable, fast-growing business, all such concerns seemed to disappear. ■■

This article was published in the UK section of the print version under the heading “Direct Forwarding”.



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments