UK FinTech Wise Moves From London Stock Exchange To U.S: What Does It Mean?

Wise, one of the UK’s fastest-growing fintech startups, has announced that it is going to move its primary stock market listing from London to the United States.

Launched on the London Stock Exchange back in 2021, the money transfer company confirmed last week that it would make the U.S its main listing location, whilst also keeping a secondary listing in London.

For many, this is a sign that London is weakening as a global tech hub. But what is the benefit of this move for Wise? And what does this mean for the future of the UK tech economy?

 

Why Would Wise Do This?

 

Ultimately, one of the main benefits for Wise is the increase in visibility amongst U.S investors.

The New York Stock Exchange and Nasdaq are home to some of the world’s biggest tech companies, and for Wise, this is an opportunity to tap into one of the world’s most dynamic startup markets.

On a practical level the move means it will be easier for U.S investors to buy and sell Wise shares. This not only puts it on their radar, but can also help drive up the share price with demand.

Speaking on the decision, Kristo Käärmann, CEO at Wise commented that the move would “drive greater awareness of Wise in the U.S., the biggest market opportunity in the world for our products”.

He also commented that the U.S has one of the most liquid capital markets, making it easier for investors to buy shares in the company, ultimately driving up the price.

However, he also noted that the company is still committed to the UK, where 20% of its staff and most of its executive team are based.

 

 

Is London’s Tech Market On The Decline?

 

With so much activity across global markets, the pressure for the London Stock Exchange to stay relevant for tech companies is growing.

The issue? Many tech companies feel like New York provides better visibility and access to more enthusiastic investors.

In fact, the move by Wise is part of a larger trend of UK listed tech companies being bought out or listed abroad, which raises questions about the UK’s ability to remain a big player on the global tech stage.

Lee Edwards, VP EMEA at Amplitude commented “The recent departure of Wise [is a] sign that the UK urgently needs to rethink how it supports and scales its tech ecosystem. London has incredible talent and ambition, but too often lacks the depth of capital markets, investor appetite, and scale-up support that founders find in New York. Without a competitive public markets environment and the right incentives to keep innovation here, we risk becoming a stepping stone rather than a destination.

“The LSE still works well for more traditional sectors, but tech companies need a different kind of environment. It’s not just about policy, banks, pension funds, and institutional investors also have a critical role to play in backing emerging tech companies and creating a more vibrant, long term investment environment.

“The UK has a proud history of entrepreneurship and now we need the full financial system working together to ensure it has a future too.”

 

What Does This Mean For The London Stock Exchange?

 

London is still a huge financial hub, but it’s important that the city retains these fast-growing companies that investors are after.

Some say that the UK market just doesn’t have the same level of appetite as the U.S. And if more companies head abroad, index funds like the FTSE 100 become less appealing to those looking for high-growth businesses.

Some analysts have commented that London must turn things around, otherwise we could see more companies list abroad – driving investment away from the UK.

 

Wise Shares Jump After The News

 

For Wise, the announcement, even just initially, has been a success.

The company reported that following the news, the share price jumped 10%, bringing its valuation up to £12 billion.

It has also seen profits rise by up to 15%, showing that it the company going from strength to strength.

 

The Move To The U.S: Good or Bad?

 

Whilst the decision to move its primary listing to the U.S is a big blow for London, Wise has said it will continue to invest in UK talent and growth.

However, this move sparks broader concerns about London, and whether it’s losing appeal as companies look for investment opportunities abroad.

Whilst this may be a wake up call for the UK, for Wise, it’s a move towards faster growth. It will be interesting to see if other high-growth companies follow suit – we’ll be watching.