Latest news with #KristoKaarmann
Daily Mail
5 days ago
- Business
- Daily Mail
'Hammer blow' to the City as UK fintech firm Wise announces it is to switch its primary listing to New York
UK fintech firm Wise is to switch its primary listing from London to New York in what was described yesterday as a 'hammer blow' to the City. The decision to up sticks adds to a transatlantic exodus as companies seek higher valuations in the American stock market. It deepens the sense of decline for London's beleaguered equity markets – hours after metal investment firm Cobalt axed plans for a UK flotation. Wise boss Kristo Kaarmann acknowledged efforts to reform Britain's listing rules but said the move was due to the US having the world's biggest capital markets, enabling more investors to buy shares. 'We kind of have to accept the reality of where the world's capital is concentrated,' he said. The money transfer company said it was not turning its back on the UK, where a fifth of its employees are based, and would continue hiring and investing in the country. It will also maintain a secondary listing in London. But Charles Hall, head of research at broker Peel Hunt, said: 'For Britain's leading fintech, founded in London, headquartered in London, to decide to turn its back on the London market can be seen as nothing but a hammer blow.' A leading City fund manager told the Mail that it was a 'devastating' setback to the London Stock Exchange, given hopes that Wise was on course to join the FTSE 100. 'There's the loss of prestige and substantial loss of tax revenue through stamp duty – but what message does it set for other successful fintech businesses in the UK?' he said. 'This is an area we should dominate.' Wise follows equipment hire group Ashtead, gambling giant Flutter, building materials firm CRH and plumber Ferguson in abandoning London. At the same time big FTSE names from Hargreaves Lansdown to Deliveroo have been snapped up by foreign predators. And a dearth of new initial public offerings (IPO) means the departing companies are not being replaced, leaving London increasingly bereft. The decision by Unilever to spin off its ice cream business in Amsterdam as well as fast fashion giant Shein's likely abandonment of a London IPO in favour of Hong Kong are among the latest blows. Wise, founded in 2011 as TransferWise, listed under its new name in 2021 with an £8billion valuation, or 800p per share. The shares have had a rocky ride but were still a third up on Wise's debut valuation before yesterday's announcement. That stoked a further rise of as much as 13 per cent, before the stock eventually closed 7.1 per cent, or 77p, higher at 1160p. The announcement came alongside results showing a 17 per cent rise in underlying profits to £282million for the year to the end of March. Other major fintech firms including Klarna and Revolut also look set to favour New York. Klarna had already lined up a US IPO before shelving it earlier this year. Alphawave takeover talks extended US semiconductor giant Qualcomm has been given more time to secure a deal to buy the British tech starlet Alphawave. The Takeover Panel agreed to extend the deadline for the Americans to table a formal bid to for a fifth time – to 5pm on Monday. The decision came ahead of the latest deadline of 5pm yesterday, and Alphawave shares rose 2.4 per cent, or 3.4p to 145p, valuing it at £1.1billion. Both companies said they 'remain engaged in discussions' over a possible deal.
Forbes
5 days ago
- Business
- Forbes
U.K. Fintech Wise Looks To U.S. Market To Fuel Its Global Ambitions
Wise cofounders Kristo Kaarmann and Taavet Hinrikus. London's beleaguered stock market is losing its grip on a 'fabulous' fintech listing and others may follow. Wise announced on Thursday that it's planning to list its shares in the U.S. The money transfer firm said it will maintain a secondary listing on the London Stock Exchange, while the U.S. will become its primary listing. The move is aimed at attracting more investment and boosting the firm's growth. The fintech's billionaire cofounder and CEO, Kristo Kaarmann, said the listing move would help 'drive greater awareness of Wise in the U.S., the biggest market opportunity in the world' for its products, and it would also enable greater access to the 'world's deepest and most liquid capital market.' 'A dual listing would also enable us to continue serving our U.K.-based owners effectively, as part of our ongoing commitment to the U.K. The U.K. 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 U.K. and global growth.' A Treasury spokesperson said, 'Wise has said it will continue to invest in the U.K., which is home to some of the world's best talent in financial services. 'The U.K. is Europe's leading hub for investment and, through overhauling listing rules and creating a new stock exchange for private companies, we are driving reform to make the U.K. the best place for businesses to start, scale and list.' Shadow business secretary Andrew Griffith swiftly responded to the news, describing Wise as a 'fabulous U.K. fintech,' while blaming the Labour government for its decision to shift its listing. 'Combined with Revolut's Paris move and millionaires fleeing London this is a devastating verdict on the U.K. socialist government's culture war against wealth creators,' Griffith said in a post on X.' Last month, Revolut said it would open a new office in Paris as part of its expansion across western Europe that will see it invest $1.1 billion over the next three years and create 200 new jobs in the French capital. Although Revolut said its global headquarters would remain in London, billionaire cofounder and CEO Nik Storonsky has said previously that it's 'just not rational' to list in London under the current conditions. Last month, Emma Reynolds, economic secretary to the Treasury, and Julia Hoggett, CEO of the London Stock Exchange, had met with executives from a number of firms, including ClearScore, Monzo, OakNorth and Revolut, in the hopes of convincing them to list in London, according to a Sky News report. The Treasury said it doesn't comment on speculation around meetings, and the London Stock Exchange did not immediately respond to a request for comment. Nonetheless, today's announcement is a clear indication that the government's efforts to revitalize the U.K.'s capital markets are not having their intended impact. London's stock market has seen a string of companies shift their listings to the U.S. in recent years, including sports betting giant Flutter and building materials company CRH. It also faied to land the initial public offering of Cambridge-based chip designer Arm Holdings, raising doubts as to whether London can host major tech listings. Wise, formerly known as TransferWise, was the London Stock Exchange's biggest ever tech listing when it went public in 2021. It currently has a market value of around £11 billion ($15 billion). It was founded by the Estonian entrepreneurs Kaarmann and Taavet Hinrikus in 2011 with the aim of offering faster and cheaper cross-border transfers. For the financial year ending March 31, Wise said its cross-border volumes had risen to £145.2 billion, a 23% increase from a year earlier. And the fintech's pre-tax profit had jumped 17% to £565 million. Kaarman contends that his firm's new payments infrastructure is faster, cheaper, and more reliable than the traditional correspondent networks. 'We're well on our way to handle trillions, not just billions, and become 'the' global network for the world's money,' he said.
Glasgow Times
5 days ago
- Business
- Glasgow Times
Wise latest to unveil plans to switch main listing from London to New York
The money transfer firm which listed in London in July 2021, said the move would 'help us accelerate our mission and bring substantial strategic and capital market benefits to Wise and our owners'. It wants to drive greater awareness of the brand in the US, which it said was the 'biggest market opportunity in the world for our products'. A primary listing on Wall Street would also give it 'better access to the world's deepest and most liquid capital market', it added. It said the change would benefit the group by 'expanding the pool of investors able to invest in Wise, in particular US domestic institutional and retail investors, the largest global constituent of investors, many of whom are currently unable to hold our shares'. Under the plans, the firm would be dual listed, with a secondary listing in London as part of its 'ongoing commitment to the UK'. Kristo Kaarmann, co-founder and chief executive of Wise, said: '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 deals another blow to London's beleaguered stock market after a raft of companies have ditched their primary listing in London, including Paddy Power owner Flutter, mining group BHP, building materials group CRH and construction rental firm Ashtead, while a growing number of UK listed firms have also been bought out by foreign rivals or taken private. And on Wednesday, Glencore-backed metal investment firm Cobalt scrapped its plans to list in London, just two days after drugs company Indivior said it would cancel the secondary listing it had retained in London, having already switched its main listing to the US last year. Chinese fast fashion giant Shein has also reportedly ditched London for Hong Kong for its upcoming blockbuster initial public offering (IPO). Wise, which was launched in 2011 under original name TransferWise, said it was not turning its back on the UK. It said: 'Our confidence in UK talent and the tech ecosystem here remains undimmed. 'One-fifth of our employees are based in the UK and we plan to continue hiring and investing in our UK team.' The group said it would call a shareholder meeting in the coming weeks for investors to vote on the proposal.
Yahoo
5 days ago
- Business
- Yahoo
The Wise share price jumps 12% on US primary listing news
The Wise (WISE.L) share price was up 12% at one point this morning (5 June) after the bank announced plans for a primary listing in the US during its FY24 results release. The company will maintain a secondary listing in London but believes 'a primary US listing would help us accelerate our mission and bring substantial strategic and capital market benefits,' said Kristo Kaarmann, co-founder and CEO of Wise. '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,' he added. In the 2024/25 fiscal year, Wise emerged as the largest mover of institutional money in and out of Brazil and is now handling 12% of all cross-border transfers involving the Philippines. Product innovation has played a key role in its growth, with new features like interest-earning accounts in Australia and Quick Pay for business invoicing. Strategic partnerships with major financial institutions, including Standard Chartered (STAN.L), Morgan Stanley (MS) and Itau (ITUB), further bolstered its position. Customer activity surged in the past year, with active customers up 22% and a 23% increase in cross-border volumes. Customer holdings grew by 44% compared to the previous year and revenue increased 15% year on year to £1.2bn. Pre-tax profit rose by 17% to £564.8m, up from £481.4m in the previous year, highlighting the firm's strong operational momentum. Formerly known as TransferWise, Wise has emerged as a significant player in the fintech industry since its inception in 2011. Founded by Estonians Taavet Hinrikus, Skype's first employee, and Kristo Käärmann, a former Deloitte consultant, the company was born out of their frustrations with the high costs and lack of transparency in international money transfers. Their solution was a peer-to-peer platform that allowed users to transfer money across borders at the real exchange rate, significantly undercutting traditional banks. The company's innovative approach quickly attracted attention and funding from notable figures such as PayPal (PYPL) co-founder Max Levchin and Virgin Group's Richard Branson. By 2020, it had reached a valuation of £3.7bn, testament to the increasing demand for cost-effective international money transfer solutions. Wise offers strong growth potential as a leading fintech innovator in cross-border payments, but still carries notable risks. Regulatory changes are a key concern as it operates across multiple jurisdictions, threatening high compliance costs, currency volatility and integration difficulties. Additionally, it also faces stiff competition from traditional banks, fintechs and blockchain firms. The planned shift to a US primary listing adds near-term uncertainty for UK investors. Despite robust financials and global expansion, Wise's premium valuation leaves little room for disappointment. Investors should weigh long-term prospects against these risks, particularly in a sector where rapid disruption and regulatory oversight are ever-present. Out of 17 analysts following the stock, 11 have Buy ratings, five Hold and four Sell. But overall, forecasts lean negative, with the average 12-month price target 4.9% lower than today's price. Still, revenue is expected to reach £2.32bn by 2027, with earnings per share (EPS) expected to climb to 41p per share. Negative forecasts aside, I think the US listing is a good move that will help boost the bank's global position and profits. As such, I think it's still worth considering even for UK-centric investors. The post The Wise share price jumps 12% on US primary listing news appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Mark Hartley has no position in any of the shares mentioned. The Motley Fool UK has recommended PayPal, Standard Chartered Plc, and Wise Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 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
Powys County Times
5 days ago
- Business
- Powys County Times
Wise latest to unveil plans to switch main listing from London to New York
British fintech firm Wise has revealed plans to switch its primary listing from London to New York in yet another setback for the City. The money transfer firm which listed in London in July 2021, said the move would 'help us accelerate our mission and bring substantial strategic and capital market benefits to Wise and our owners'. It wants to drive greater awareness of the brand in the US, which it said was the 'biggest market opportunity in the world for our products'. A primary listing on Wall Street would also give it 'better access to the world's deepest and most liquid capital market', it added. It said the change would benefit the group by 'expanding the pool of investors able to invest in Wise, in particular US domestic institutional and retail investors, the largest global constituent of investors, many of whom are currently unable to hold our shares'. Under the plans, the firm would be dual listed, with a secondary listing in London as part of its 'ongoing commitment to the UK'. Kristo Kaarmann, co-founder and chief executive of Wise, said: '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 deals another blow to London's beleaguered stock market after a raft of companies have ditched their primary listing in London, including Paddy Power owner Flutter, mining group BHP, building materials group CRH and construction rental firm Ashtead, while a growing number of UK listed firms have also been bought out by foreign rivals or taken private. And on Wednesday, Glencore-backed metal investment firm Cobalt scrapped its plans to list in London, just two days after drugs company Indivior said it would cancel the secondary listing it had retained in London, having already switched its main listing to the US last year. Chinese fast fashion giant Shein has also reportedly ditched London for Hong Kong for its upcoming blockbuster initial public offering (IPO). Wise, which was launched in 2011 under original name TransferWise, said it was not turning its back on the UK. It said: 'Our confidence in UK talent and the tech ecosystem here remains undimmed. 'One-fifth of our employees are based in the UK and we plan to continue hiring and investing in our UK team.'
