Latest news with #Ashtead
Yahoo
5 days ago
- Business
- Yahoo
Stock exchange dealt another blow as £12bn fintech ditches main London listing
The online payments company Wise has said it will move its main share listing to the US, in the latest blow to London's beleaguered stock market. Wise, which is one of the biggest financial technology businesses in the country and has been listed in London since 2021, said on Thursday that it now intends to dual list its shares in the US and the UK in an attempt to attract more investors and boost its value. The company's chief executive, Kristo Käärmann, said moving its main listing would help 'drive greater awareness of Wise in the US, the biggest market opportunity in the world for our products today, and enabling better access to the world's deepest and most liquid capital market. 'A dual listing would also enable us to continue serving our UK-based owners effectively, as part of our ongoing commitment to the UK. The UK is home to some of the best talent in the world in financial services and technology, and we will continue to invest in our presence here to fuel our UK and global growth.' It represents yet another setback for London's stock market, as a string of high-profile companies have defected to New York in search of better liquidity, higher valuations and access to bigger investors. Last year, the construction equipment rental company Ashtead announced it would move its primary listing to the US, following companies such as the gambling group Flutter Entertainment and the building materials provider CRH. Earlier this week the drugmaker Indivior said it planned to cancel the secondary listing it had retained in London after switching its main stock listing to the US last year. Also this week the metal investment company Cobalt Holdings scrapped its move to list in London, which was expected to have raised about $230m (£170m). Wise, formerly known as TransferWise, joined the stock market in 2021 at a valuation of £8.75bn, making it the biggest ever listing of a UK tech company. The shares rose 10% on Thursday morning to value the company at more than £12bn Its decision to pivot to the US also marks another setback for London as a venue for tech businesses. In 2023 the chip designer Arm Holdings, which is headquartered in Cambridge, also decided to go public in New York rather than London. Wise will call a shareholder meeting for investors to vote on the proposal in the coming weeks. It argued that moving its primary listing could provide a possible pathway to inclusion in major US share indices, which could improve liquidity and demand for Wise shares. Matt Britzman, an equity analyst at the broker Hargreaves Lansdown, noted the decision to move the primary listing away from London created an obstacle for the company to join the FTSE 100, Britain's blue-chip share index. 'Keeping a presence in London makes sense, but it does little to sugarcoat the fact that yet another London-listed tech firm is looking across the Atlantic for better valuations – a story that's becoming all too familiar,' he said. A fifth of Wise employees are based in the UK and the company has said it plans to continue hiring and investing in the country. Wise was founded by Käärmann and Taavet Hinrikus in 2011, and has since grown rapidly as it has taken market share from big banks by offering a cheaper money transfer service to individuals and small businesses. Alongside the announcement, the company also reported a 15% rise in revenue for its 2025 financial year to £1.2bn, with profit before tax up 17% to £564.8m. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Fintech giant Wise plans to shift main listing to New York as London sheds innovative companies
Wise, the London-based fintech unicorn, is moving its primary listing to New York, adding to the flight of public companies from the British market in recent years. The company, founded by two Estonians, debuted on the London Stock Exchange in 2021, at a time when tech and finance listings were booming worldwide. This seemed like an encouraging prospect for London, which aimed to be the epicenter of global tech companies in the European region. But such hopes have fallen flat in recent years as many companies have opted to move their primary listings from London, including $18.5 billion construction equipment company Ashtead, $61 billion building materials firm CRH, and $138 billion British chips company Arm Holdings. Still others, such as British cybersecurity firm Darktrace, have been taken private in multi-billion-dollar acquisitions. Wise expects that listing in New York could 'provide a potential pathway to inclusion in major U.S. indices, further enhancing liquidity and demand for Wise shares.' The move would also make the money transfer platform more appealing to American investors as it eyes further growth. It admitted that it won't immediately be eligible for the big indices, but having a primary New York listing could help. Shareholders will vote on Wise's plan to move its primary listing to New York, and more details will follow later this month. 'While the FTSE 100's share price performance might have beaten the main U.S. indices this year, the broader U.K. stock market continues to take a succession of blows to the head from a reputational perspective,' Russ Mould, investment director at AJ Bell, wrote in a note. 'Although subject to a shareholder vote, it seems unlikely Wise will receive widespread opposition if it means the shares could be worth more in the future.' When floating on the LSE four years ago, Wise's market capitalization was $11 billion. Today, it's just shy of $17 billion. London has been scrambling to keep its public companies as more of them look across the Atlantic, hoping for greater access to investors and global markets and higher valuations. The capital, still considered the financial hub of the European region, has seen a sharp drop in interest—last year, there were just 17 IPOs versus 88 exits via delisting or primary listing transfers. While some of that fall is explained by the boom and bust related to the COVID-19 pandemic, companies have cited reasons such as liquidity and regulatory concerns. The Financial Conduct Authority in the U.K. overhauled rules last July to encourage more companies to join the primary market and to help companies move from the smaller market called AIM. Those changes have yet to reap full benefits, given that companies continue to leave London in favor of other destinations. Glencore-backed Cobalt Holdings scrapped plans for a $230 million IPO in London on Wednesday, adding to the overall pessimism. Wise's decision to shift its primary listing was coupled with its full-year earnings for the previous financial year. It reported a 17% increase in pretax profit of £565 million as well as a 21% jump in customer number to nearly 16 million. It was a formidable player in the fintech space, and its pivot to the U.S. raises questions about what IPO hopefuls in the industry, such as Monzo, would do if they chose to list publicly. The situation is clearly dire—the U.K. Treasury met with Monzo and Revolut to convince them to choose London if they do decide to go public, City AM reported last month. Despite its New York listing plans, Wise remains rooted in London, having recently moved to bigger offices in the city's Shoreditch neighborhood—a magnet for many tech companies. Wise representatives didn't immediately return Fortune's request for comment. This story was originally featured on
The Guardian
5 days ago
- Business
- The Guardian
Stock exchange dealt another blow as £12bn fintech ditches main London listing
The online payments company Wise has said it will move its main share listing to the US, in the latest blow to London's beleaguered stock market. Wise, which is one of the biggest financial technology businesses in the country and has been listed in London since 2021, said on Thursday that it now intends to dual list its shares in the US and the UK in an attempt to attract more investors and boost its value. The company's chief executive, Kristo Käärmann, said moving its main listing would help 'drive greater awareness of Wise in the US, the biggest market opportunity in the world for our products today, and enabling better access to the world's deepest and most liquid capital market. 'A dual listing would also enable us to continue serving our UK-based owners effectively, as part of our ongoing commitment to the UK. The UK is home to some of the best talent in the world in financial services and technology, and we will continue to invest in our presence here to fuel our UK and global growth,' he said. It represents yet another setback for London's stock market, as a string of high-profile companies have defected to New York in search of better liquidity, higher valuations and access to bigger investors. Last year the construction equipment rental company Ashtead announced it would move its primary listing to the US, following companies such as the gambling group Flutter Entertainment and the building materials provider CRH. Earlier this week the drugmaker Indivior said it planned to cancel the secondary listing it had retained in London after switching its main stock listing to the US last year. Also this week the metal investment company Cobalt Holdings scrapped its move to list in London, which was expected to have raised about $230m. Wise, formerly known as TransferWise, joined the stock market in 2021 at a valuation of £8.75bn, making it the biggest ever listing of a UK tech company. The shares rose 10% on Thursday morning to value the company at more than £12bn Its decision to pivot to the US also marks another setback for London as a venue for tech businesses. In 2023 the chip designer Arm Holdings, which is headquartered in Cambridge, also decided to go public in New York rather than London. Wise will call a shareholder meeting for investors to vote on the proposal in the coming weeks. It argued that moving its primary listing could provide a possible pathway to inclusion in major US share indices, which could improve liquidity and demand for Wise shares. Matt Britzman, an equity analyst at the broker Hargreaves Lansdown, noted the decision to move the primary listing away from London created an obstacle for the company to join the FTSE 100, Britain's blue-chip share index. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion 'Keeping a presence in London makes sense, but it does little to sugarcoat the fact that yet another London-listed tech firm is looking across the Atlantic for better valuations – a story that's becoming all too familiar,' he said. A fifth of Wise employees are based in the UK and the company has said it plans to continue hiring and investing in the country. Wise was founded by Käärmann and Taavet Hinrikus in 2011, and has since grown rapidly as it has taken market share from big banks by offering a cheaper money transfer service to individuals and small businesses. Alongside the announcement, the company also reported a 15% rise in revenue for its 2025 financial year to £1.2bn, with profit before tax up 17% to £564.8m.
Business Mayor
30-04-2025
- Business
- Business Mayor
The grass is not always greener on US stock markets
Donald Trump is doing an excellent job of demonstrating that US stock markets don't always outperform European ones. On-off tariff wars, threats to fire the head of the Federal Reserve and general unpredictability have prompted a reappraisal of boring old Europe. The S&P 500 is down 6% this year, versus a gain of 2.5% for FTSE 100 index and a 3% improvement in the pan-European Stoxx Europe 600. The differences aren't enormous but they mark a reversal from recent years. Will that be enough to stop the 'exodus' of UK and other European companies to the supposedly higher-valued and more liquid US markets? The thesis – plodding European versus dynamic US – has been the popular narrative for years as the likes of the plant hire group Ashtead, the plumbing group Ferguson and the Paddy Power-owning Flutter have moved their primary listings to the US. It has become obligatory to describe every departure as 'another blow' to London. Well, here's a 'reality check' report from the New Financial thinktank that ought to be digested by any footloose board of a UK-quoted company that imagines its share price would be higher if only the listing was in the US. It ain't necessarily so. The report identifies 130 European companies, including 51 UK ones, that have moved to the US over the past decade, whether by switching their listing, listing for the first time or merging into a US shell entity. The collection is large, no question – worth $676bn (£504m) in today's money at the time of the moves. On the other hand, it's also just 2% of the number of European companies. Read More Earnings call: Digital Realty posts record Q3 2024 performance The London Stock Exchange. The FTSE 100 index has gained 2.5% this year. Photograph: Tolga Akmen/EPA But the startling finding is the post-switch performance. The analysis shows that 70% of European companies that have moved to the US are trading below their listing price; fewer than a fifth have beaten the S&P 500; and three-quarters have not beaten the European market after their move. The numbers, it should be said, are skewed by the appalling performance of European companies that joined the brief US fad for SPACs, or 'blank cheque' special purpose acquisition companies. Of the 42 firms that took that route, nine went to zero (think Cazoo and the electric van firm Arrival). But even among the mature companies that simply switched their listings, the share price performance amounts to roughly a par score: 44% have performed better than the European market since they moved. Why might that be? Simply because the valuation premium on US markets (about 30% at the last count) doesn't translate at the level of individual companies or sectors. A large chunk of the go-go US rating is accounted for by the massively greater weighting of highly valued and large technology firms. As New Financial puts it: 'US stocks have a higher valuation because they have higher growth and higher return on equity, not because they happen to be listed in the US.' None of which is to say that European firms should never move. For some, it will make sense. Revenue-wise, Ashtead and Ferguson had morphed into US entities. Sweden's Spotify had probably outgrown its home market. Sadly, it was probably commercially reasonable for SoftBank to relist Arm Holdings, the UK's most celebrated tech firm, in the US where it could rub shoulders with the likes of Nvidia. And the US undoubtedly has advantages in biotech. Read More Gamma Intermediate selling 6.4% stake in Italy's Lottomatica The point, though, is that the grass is not always greener, except (from the point of view of executives) when it comes to boardroom pay, which one suspects is a swing factor in some cases. There have been successes – Arm is definitely in that camp – but the overall performance of departers 'suggests that moving is not a panacea', says the report. It is not prescribing complacency and is full of ideas to improve European stock markets by making them less fragmented. But, in the hierarchy of market-related things to worry about, US drift is probably not top of the pile, especially if Trumpian chaos is now deterring corporate tourists. Instead, here is the report's genuinely alarming statistic: 1,000 listed companies in Europe, with a combined value of more than $1tn, have been acquired by private equity and privately held companies in the past decade. The march of private equity still feels like the bigger threat to stock markets.
The Guardian
29-04-2025
- Business
- The Guardian
The grass is not always greener on US stock markets
Donald Trump is doing an excellent job of demonstrating that US stock markets don't always outperform European ones. On-off tariff wars, threats to fire the head of the Federal Reserve and general unpredictability have prompted a reappraisal of boring old Europe. The S&P 500 is down 6% this year, versus a gain of 2.5% for FTSE 100 index and a 3% improvement in the pan-European Stoxx Europe 600. The differences aren't enormous but they mark a reversal from recent years. Will that be enough to stop the 'exodus' of UK and other European companies to the supposedly higher-valued and more liquid US markets? The thesis – plodding European versus dynamic US – has been the popular narrative for years as the likes of the plant hire group Ashtead, the plumbing group Ferguson and the Paddy Power-owning Flutter have moved their primary listings to the US. It has become obligatory to describe every departure as 'another blow' to London. Well, here's a 'reality check' report from the New Financial thinktank that ought to be digested by any footloose board of a UK-quoted company that imagines its share price would be higher if only the listing was in the US. It ain't necessarily so. The report identifies 130 European companies, including 51 UK ones, that have moved to the US over the past decade, whether by switching their listing, listing for the first time or merging into a US shell entity. The collection is large, no question – worth $676bn (£504m) in today's money at the time of the moves. On the other hand, it's also just 2% of the number of European companies. But the startling finding is the post-switch performance. The analysis shows that 70% of European companies that have moved to the US are trading below their listing price; fewer than a fifth have beaten the S&P 500; and three-quarters have not beaten the European market after their move. The numbers, it should be said, are skewed by the appalling performance of European companies that joined the brief US fad for SPACs, or 'blank cheque' special purpose acquisition companies. Of the 42 firms that took that route, nine went to zero (think Cazoo and the electric van firm Arrival). But even among the mature companies that simply switched their listings, the share price performance amounts to roughly a par score: 44% have performed better than the European market since they moved. Why might that be? Simply because the valuation premium on US markets (about 30% at the last count) doesn't translate at the level of individual companies or sectors. A large chunk of the go-go US rating is accounted for by the massively greater weighting of highly valued and large technology firms. As New Financial puts it: 'US stocks have a higher valuation because they have higher growth and higher return on equity, not because they happen to be listed in the US.' None of which is to say that European firms should never move. For some, it will make sense. Revenue-wise, Ashtead and Ferguson had morphed into US entities. Sweden's Spotify had probably outgrown its home market. Sadly, it was probably commercially reasonable for SoftBank to relist Arm Holdings, the UK's most celebrated tech firm, in the US where it could rub shoulders with the likes of Nvidia. And the US undoubtedly has advantages in biotech. The point, though, is that the grass is not always greener, except (from the point of view of executives) when it comes to boardroom pay, which one suspects is a swing factor in some cases. There have been successes – Arm is definitely in that camp – but the overall performance of departers 'suggests that moving is not a panacea', says the report. It is not prescribing complacency and is full of ideas to improve European stock markets by making them less fragmented. But, in the hierarchy of market-related things to worry about, US drift is probably not top of the pile, especially if Trumpian chaos is now deterring corporate tourists. Instead, here is the report's genuinely alarming statistic: 1,000 listed companies in Europe, with a combined value of more than $1tn, have been acquired by private equity and privately held companies in the past decade. The march of private equity still feels like the bigger threat to stock markets.
