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Published on
June 5, 2025
5 min read
Major Blow for London Stock Exchange As UK Fintech Wise Shifts Listing to the US
UK money transfer firm Wise has announced plans to shift its initial public listing from London to the US, Reuters reported. The company becomes the latest entity in the UK to quit the London stock market in pursuit of larger valuation. In April this year, the company said it was evaluating listing options.
However, the news of Wise US listing as part of its dual listing came as a surprise for analysts. “This would allow Wise’s shares to trade on both a US stock exchange and the LSE,” Wise said.
According to Wise CEO Kristo Kaarmann, the decision to list in the US was informed by the fact that the US has the deepest and most liquid capital markets. This makes it easier for investors to purchase company shares.
Market Reaction
Wise shares surged 11% on June 5 following the announcement. Wise was first listed on the London stock exchange back in 2021. At the time, the company’s direct listing was valued at $10.84 billion. Currently, Wise is valued at $16.28 billion.
Over the last 12 months, shares of this fintech have risen by 40%. However, this growth followed years of the shares trading below the 2021 listing price.
Wise’s move to the US is a major blow to UK’s plan to revive the London stock market as appeal for better and deeper performing markets encourages businesses to shift their listing abroad. Only a limited number of firms are choosing to list on the London stock exchange. Wise plans to maintain its listing in the stock exchange.
London’s IPO Challenge
Wise leaves the London stock exchange at a time when the UK is working to make the London stock exchange attractive for companies seeking to raise funds through initial public offerings. Last year, the country made changes to its company listing rules. However, it has been struggling to attract IPOs.
In the recent past, several companies have chosen to list in stock exchanges outside the UK. For instance, Unilever opted to list its ice-cream business in Amsterdam instead of London. Singapore-based fashion company Shein is considering listing in Hong Kong after experiencing Chinese regulatory challenges in its plans to list on the London exchange. Another company, Cobalt Holdings dropped its plans to launch an IPO at the London stock exchange on June 4.
“The government has definitely made an effort to align to the US or other large capital markets in terms of the rules and set-ups that are common here, so anything that can be done in the U.S., I think, can be done in the UK as well, so that is not the reason. But on the other hand we kind of have to accept the reality of where the world’s capital is concentrated,” Kaarmann said.
Rising Competition
Wise continues to face stiff competition from its peer, Revolut. The UK fintech has been competing with Wise on its features and pricing. Revolut is also pushing aggressively in the US. In the year ending 31 March, Wise reported a 17% increase in pretax profit, which amounted to 282.1 million pounds. Wise will continue investing in the UK. Most of the fintech’s executive team is based in Britain and 20% of its staff work from there too.
