The fintech giant will list itself on London Stock Exchange in a Spotify style listing marking the first tech company to seek a direct listing in London.
Fintech Wise, which is a UK-based tech company, will be going public this week on London Stock Exchange in a direct listing style that was usually opted by Spotify Technology SA (NYSE: SPOT) in the US a few years ago. The company has updated their prospectus stating the first trades will begin at 11:22 London time to initiate further agreements.
Fintech Wise to Adopt Direct Listing Method to Go Public on LSX
Wise will adopt a direct listing method which has been regarded as a much more profitable way of listing on the stock market as it saves underwriting fees and mispricing of available stock.
The company selected this method to go live which was made popular by Spotify three years ago when the company took this route to list itself on the stock exchange. Wise’s decision has become a marker for other companies to follow and also will be a big challenge for the company to seek possible value estimations.
Wise Direct Listing Considered a Big Test for London after Brexit to Attract More Tech Success Stories
Wise formerly known as the wise transfer is a popular UK-based company that offers plausible ways to conduct cross-border transactions. The company is set to have a customer base with approx 10 million customers who have conducted cross-border transactions amounting to $7 billion. The company is continuously expanding their operations and now have begun preparation to go public via a direct listing on London Stock Exchange.
Fintech Wise’s decision to go public can be seen as a big test for London post-Brexit as the company will be vying for attention from other tech companies and will ultimately seek collaborations and fundings to scale their operations on a global platform.
The Wise list holds incredible importance to London as it is competing to attract more technical success stories after Britain decided to leave European Union. Despite raising concerns regarding governance due to ownership hierarchy, Wise has been structured in a way that its dual-class shares have classification where the shareholders can hold Class B shares and do not hold more voting rights.
Juhi Mirza is an archaeological major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.