Earlier today, Wise announced its desire to list on the London Stock Exchange. This direct listing would be a feather in the UK’s cap, since it has previously indicated a strong ambition to become a key centre in this industry.
As per Bloomberg, the digital payments business may be valued at £4 billion ($5.6 billion) to £5 billion as a result of the IPO. In London, direct listing is not a popular practice. It implies that no more funds will be sought, and current investors will be able to sell their stock without any limitations, such as a lock-up period.
Considering its desire to be a large financial center post-Brexit, the UK government will be overjoyed to see such an elevated firm in the digital payments industry listed.
Wise was formerly called as TransferWise, and it was founded in 2011 by Estonian-born co-creators Taavet Hinrikus and Kristo Kaarmann, who were dissatisfied with the exorbitant fees imposed by banks on money transfers sent back to their homeland.
Wise has now launched its payments business throughout Asia, amassing a client base of over 10 million people in the process. According to the firm, sales increased at a compound annual rate of 54 percent in the most recent financial year, while earnings before tax more than doubled from the prior year, totaling £41 million.
Wise intends to develop a client shareholder plan, which will allow consumers who register as shareholders to get bonus shares, in order to incentivize and significantly expand its customer base. The bonus amount would be fixed at 5% of the shares that a client purchased and kept for at least one year.