British fintech firm Wise is preparing to shift its primary stock market listing to New York in a move that will be seen as a fresh vote of no confidence in London’s ability to retain leading technology companies.
The cross-border payments specialist, formerly known as TransferWise, is reportedly in the early stages of considering a dual listing that would designate New York as its main market – while maintaining a secondary listing in London. If the plan proceeds, Wise would join an accelerating exodus of tech firms departing the City for Wall Street in pursuit of deeper capital pools, higher valuations, and greater liquidity.
Founded in 2011 by Estonian entrepreneurs Kristo Käärmann and Taavet Hinrikus, Wise was once heralded as a homegrown UK tech success story. Its 2021 direct listing on the London Stock Exchange – then valued at £8 billion – was seen as a major win for a city grappling with the fallout from Brexit and the increasing allure of the US markets.
Now, with tech stocks commanding significantly higher valuations on the Nasdaq, and investor appetite in London struggling to match global benchmarks, Wise is reportedly eyeing a change in primary domicile that could reshape its capital-raising strategy.
The news comes amid growing concerns that London’s stock market is losing its appeal for growth companies, particularly in sectors such as fintech, software and AI. A string of high-profile firms – including Arm Holdings, Flutter Entertainment and CRH – have all opted for US listings or moved their primary operations to New York in recent years.
Analysts say the shift is being driven by multiple factors: greater access to institutional capital in the US, more tech-savvy investors, and the prestige of a Nasdaq listing – all of which combine to make American exchanges more attractive to rapidly scaling firms.
Wise, which remains profitable and continues to grow its customer base globally, has not confirmed the move publicly but is said to be in private consultations with advisers and major shareholders. A decision could be announced within the next 12 months, pending regulatory discussions and board approval.
A spokesperson for Wise said: “We remain committed to our mission of making international money movement faster, cheaper and more transparent for everyone. We’re constantly reviewing how best to support that mission – including where and how we access capital markets.”
Implications for UK business travellers
For corporate clients and business travellers, the shift in listing venue may not impact the day-to-day services offered by Wise, which include multi-currency accounts, borderless payments, and prepaid business cards. However, the strategic pivot highlights a deeper concern: that some of Britain’s most innovative companies no longer see London as their natural financial home.
Wise has been a popular choice among SMEs, freelancers and internationally mobile entrepreneurs – all of whom have valued its low-cost currency exchange and real-time transfer capabilities. Its platform supports more than 50 currencies and processes around £9 billion in monthly transactions.
With Wise potentially raising capital in the US to fund further expansion, including product innovation and entry into new markets, business customers may benefit indirectly from increased R&D and improved service features.
Yet for the broader UK fintech ecosystem, the symbolic loss of another ‘unicorn’ to Wall Street is a bitter pill to swallow – especially at a time when ministers and the London Stock Exchange have been working hard to position Britain as a global tech hub.
The UK government has made no secret of its desire to build London into Europe’s answer to Silicon Valley. In 2021, former Chancellor Rishi Sunak commissioned the Lord Hill review to reform listing rules and attract more fast-growing tech firms to the LSE. Reforms included allowing dual-class share structures and reducing the minimum free float requirement – aimed at making the market more appealing to founder-led businesses.
Yet despite these changes, the flow of tech IPOs in London has been anaemic. Just 23 firms floated on the LSE in 2023 – down from 122 in 2021 – with many citing valuation gaps and low trading volumes as deterrents.
Wise’s potential move underscores the urgency of reversing this trend. “If even profitable, scale-stage tech firms like Wise are no longer convinced by London, it sends a worrying signal to the rest of the market,” said one capital markets strategist. “The government and the LSE have work to do.”
Wise’s shares, listed under the ticker WISE, have been volatile in recent months, reflecting wider concerns over fintech profitability and global interest rate uncertainty. However, the company continues to post solid financials, with revenues growing 23% year-on-year and a net income of £194 million in its latest results.
Investors welcomed the prospect of a dual listing, which they believe could unlock shareholder value by increasing liquidity and widening the investor base.
“Wise is a solid business with global ambitions,” said a City analyst. “A US listing could make sense if it gives them better access to growth capital and analyst coverage. But it’s undeniably a blow to London.”
If Wise proceeds with a New York listing, it would follow in the footsteps of chipmaker Arm, which opted for a Nasdaq IPO in 2023 despite pressure from UK politicians to list in London. The move was widely seen as a wake-up call for British policymakers.
For business travellers and corporate finance professionals, the story serves as a reminder of how global capital flows are reshaping the strategic decisions of UK-based firms. While Wise may continue to operate from its London headquarters, its financial centre of gravity may soon shift westward – taking a little more of the City’s clout with it.