British money transfer company Wise announced Thursday that it intends to move its primary stock listing to the United States, while maintaining a secondary listing on the London Stock Exchange (LSE). This marks a notable setback for London’s status as a global hub for tech IPOs.
Market Reaction and Valuation
In its full-year earnings report, Wise stated the move to a dual listing will enable its shares to trade on both a U.S. stock exchange and the LSE. The company’s shares rose 7.1% by market close, after earlier gaining nearly 11% on the news.
Wise originally debuted on the London stock market in 2021 via a direct listing valued at £8 billion ($10.84 billion). The company is now valued at £11.07 billion, per LSE data. Its initial London listing was seen as a key success for the UK government, then led by Prime Minister Rishi Sunak, which sought to attract global tech firms to London for their IPOs.
Challenges Facing London’s Stock Market
However, London’s position as a center for major tech listings has since come under question. Critics cite a lack of liquidity and insufficient investment analyst expertise needed to support large-scale tech offerings.
The uncertainty extends beyond technology companies. On Wednesday, Cobalt Holdings, a metals investment firm backed by Glencore, abandoned plans for a London IPO. That listing was expected to be the UK’s largest since early 2024.
Author’s Opinion
London’s difficulties in retaining top-tier tech listings reveal a deeper challenge: global capital markets are evolving, and cities must continuously adapt to remain competitive. The U.S. market’s scale, liquidity, and specialized expertise give it an edge in attracting fintech and tech giants. Unless London innovates and addresses these gaps, it risks losing its influence in the rapidly changing financial landscape.
Featured image credit: Azola Legal Services
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