Latest news with #Wise
Yahoo
4 hours ago
- Business
- Yahoo
Fintech champion's founders split over plan to abandon Britain for US
Kristo Käärmann (left) and Taavet Hinrikus founded Wise together in 2010 - Levon Biss/The Forbes Collection The founders of the £11bn UK fintech champion Wise have clashed over an attempt to shift its main listing to the US. In a letter to shareholders, Taavet Hinrikus, who co-founded Wise with chief executive Kristo Käärmann in 2010, warned he was 'deeply troubled' by the proposals, which he claimed would concentrate power among a handful of company insiders. Mr Hinrikus claimed directors had 'buried' a bid to increase their influence over the company in proposals that shareholders will vote on this week. As well as agreeing to move Wise's primary listing from London to New York, the voting documents ask shareholders to agree to a 10-year extension to super-voting shares held by early investors, including Mr Käärmann. These shares had been scheduled to expire in July 2026 and ensure outsized control for a few insiders, granting them 90pc of the voting rights. 'A dangerous precedent' Mr Hinrikus, who holds a £550m stake in Wise and was chief executive of the company until 2017, claimed it was 'entirely inappropriate and unfair' to combine the two issues in one vote and a 'contravention of shareholder democracy'. The letter, which was sent by Mr Hinrikus's Skaala Investments, said it was not 'in principle' opposed to the US listing, but urged shareholders to vote against the current scheme. It said: 'Entrenching disproportionate power in the hands of a few sets a dangerous precedent – one that contradicts the values on which Wise built its public credibility.' The intervention has unearthed a rift between the two Wise founders, who launched the payments business 15 years ago after meeting at a party and bonding over their shared troubles of sending money home to their native Estonia. In response to the letter, Mr Käärmann said Mr Hinrikus 'no longer plays an active role in Wise' and has been 'pursuing his own interests' since 2021. He said the shareholding structure 'helps us build a sustainable and profitable business for the long term'. Mr Hinrikus led Wise from 2010 until 2017 before becoming chairman. He stepped down from the company in 2021, although he still holds 15pc of the business's super-voting shares. He has since emerged as one of Britain's leading start-up investors, backing dozens of businesses across Europe. The entrepreneur was an outspoken critic of Brexit and said leaving the EU had made it harder to set up a financial company in London. Dual-share structure The board of Wise said it was 'disappointed' by Mr Hinrikus's letter. It added he had endorsed its current dual share structure when Wise went public in London in 2021.
Yahoo
10 hours ago
- Business
- Yahoo
London IPO fundraising slumps in blow to UK
Fundraising from London's initial public offering (IPO) scene slumped in the first half of 2025, with just nine initial public offerings (IPOs) raising £182.8m ($246.2m) – raising questions about the fading allure of the UK as a hub for global capital. The bleak figures mark a steady decline from the same period last year, when eight IPOs generated £526.7m in H1 2024. The downturn continued in the second half of 2024, with nine IPOs raising £258m, according to data released by law firm White & Case LLP. London's most significant IPO of 2025 to date came in April with the listing of professional services company MHA (MHA.L), which raised £98m on the Alternative Investment Market (AIM). Read more: How to build passive income However, the City's ongoing struggle to maintain its position as a destination for high-growth tech listings is evident, as major firms like AstraZeneca (AZN.L) and Wise (WISE.L) explore shifting their listings to the US. Reports suggest that AstraZeneca's (AZN.L) CEO is considering relocating the pharmaceutical company's primary listing to the US, while money transfer service Wise (WISE.L), valued at £11bn, plans to follow suit next year. Online fast fashion giant Shein has filed for an IPO in Hong Kong as it struggled to gain the go-ahead from Chinese regulators for a flotation in London. "Shein's listing would have been a boost to the market," Alasdair Steele, corporate partner with law firm CMS, told Reuters. "However, there was never any guarantee that a single large listing would reignite the IPO market." In February, Unilever (ULVR.L) said it had chosen Amsterdam for the main listing of its ice cream business. That follows a string of London-listed companies that have either moved to a different market, such as online betting company Flutter (FLTR.L) Other major companies, such as Shell (SHEL.L), have considered a move. Despite these lacklustre figures, the market recently experienced a boost when Norwegian software giant Visma reportedly chose London over Amsterdam for its €19bn (£16.2bn) IPO. This shift comes at a critical time as London seeks to remain relevant amid global competition for tech listings. London IPO activity could jump from September Despite the challenges, Jonathan Parry, a partner in White & Case's Capital Markets group, sees potential in the UK capital. "The inherent strengths of London, including its deep pools of capital and liquidity, are often overlooked," he said. "As we have seen from high-profile capital raises this year, the London market functions very effectively for companies that have a compelling equity story and a strong management team." In the face of this mixed performance, UK public M&A activity has shown signs of recovery. White & Case data shows that Q2 2025 saw a surge in deal volumes, which tripled to 27 deals compared to 10 in Q1 2025. Furthermore, the total value of these transactions surged 353% to £18.5bn, up from £4.1bn in Q1. This activity was largely attributed to falling interest rates, a stable political and regulatory environment, and attractive valuations on offer. According to Parry, the growing IPO pipeline should pick up once again if the recent turbulence calms down. "This would mark a much-needed boost for the City and be a helpful reminder that London remains both Europe's preeminent financial centre and its largest listing venue," he said. Read more: Jobs data increases odds on Bank of England interest rate cut City investment bank Peel Hunt reported that most UK IPO candidates are waiting until September to decide whether to proceed with listings. The firm also said that sentiment around London listings has started to recover following a dip when US president Donald Trump announced sweeping tariffs in April. In its latest 'IPO Speedometer' report, Peel Hunt stated that the UK IPO market remains "selectively open," with several companies looking at a post-summer "window" to potentially debut on the London Stock Exchange. "While we are still some way from a fully open UK IPO market, and there has been limited recent transaction activity, we do see conditions improving meaningfully, particularly around the broader equity market backdrop, which has turned from a headwind to a tailwind, and investor sentiment, which is increasingly constructive," Peel Hunt wrote. UK weighs changes to IPO rules to attract foreign capital Meanwhile, efforts are under way to streamline London's capital markets. The Financial Conduct Authority (FCA) has confirmed plans to reduce red tape, making it easier and quicker for companies to raise funds. Under new rules, companies listed on the London Stock Exchange will no longer need to publish lengthy prospectuses when issuing additional shares. Also, the time between the publication of initial documents and an IPO is set to be halved. The FCA's new measures will also simplify the process for corporate bond issuance to retail investors, and a new public offer platform will help smaller growth companies raise capital more easily. There are also reports that shares in UK-listed companies could soon be traded 24 hours a day under plans from the London Stock Exchange Group, or LSEG.L, (LSEG.L) to tap into booming demand from night owl traders. The LSEG (LSEG.L), which owns the London stock market, is weighing plans to launch a 24-hour trading platform, according to the Financial Times. This move is seen as a strategic attempt to boost the appeal of the UK's sluggish stock market and attract both overseas investors and younger traders keen on buying British shares at any time of day. The shift in trading patterns, particularly in the US, is reshaping how markets operate. In the US, an increasing number of transactions are being carried out outside traditional working hours by a new wave of Gen Z retail investors using smartphone apps. This has left traditional exchanges exposed to competition, as younger, tech-savvy investors opt for more flexible trading hours. Read more: Why Apple, Amazon and other tech giants are considering bitcoin Cryptocurrency markets, such as bitcoin (BTC-USD) trading, already operate around the clock, making the notion of limited trading hours for traditional equities increasingly outdated. Platforms like Robinhood have also capitalised on this trend, allowing investors to trade stocks during late hours, further adding to the perception that traditional market hours are outdated. At present, London-listed shares only trade between 8am and 4pm. These regulatory changes come at a time when companies in the UK are grappling with increasing uncertainty. A report from EY-Parthenon showed that the number of London-listed companies warning of lower profits has spiked. In Q2 2025, 59 firms issued profit warnings, a 20% increase compared to 49 during the same period last year. EY-Parthenon attributed this rising uncertainty to "rapid and unpredictable policy shifts" that have a "paralysing effect on confidence, decision-making, and spending".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
20 hours ago
- Business
- Yahoo
London IPO fundraising slumps in blow to UK
Fundraising from London's initial public offering (IPO) scene slumped in the first half of 2025, with just nine initial public offerings (IPOs) raising £182.8m ($246.2m), raising questions about the fading allure of the UK as a hub for global capital. The bleak figures mark a steady decline from the same period last year, when eight IPOs generated £526.7m in H1 2024. The downturn continued in the second half of 2024, with nine IPOs raising £258m, according to data released by law firm White & Case LLP. London's most significant IPO of 2025 to date came in April with the listing of professional services company MHA (MHA.L), which raised £98m on the Alternative Investment Market (AIM). Read more: How to build passive income However, the City's ongoing struggle to maintain its position as a destination for high-growth tech listings is evident, as major firms like AstraZeneca (AZN.L) and Wise (WISE.L) explore shifting their listings to the US. Reports suggest that AstraZeneca's CEO is considering relocating the pharmaceutical company's primary listing to the US, while money transfer service Wise, valued at £11bn, plans to follow suit next year. Online fast fashion giant Shein has filed for an IPO in Hong Kong as it struggled to gain the go-ahead from Chinese regulators for a flotation in London. "Shein's listing would have been a boost to the market," Alasdair Steele, corporate partner with law firm CMS, told Reuters. "However, there was never any guarantee that a single large listing would reignite the IPO market." In February, Unilever (ULVR.L) said it had chosen Amsterdam for the main listing of its ice cream business. That follows a string of London-listed companies that have either moved to a different market, such as online betting company Flutter (FLTR.L) Other major companies, such as Shell (SHEL.L), have considered a move. Despite these lacklustre figures, the market recently experienced a boost when Norwegian software giant Visma reportedly chose London over Amsterdam for its €19bn (£16.2bn) IPO. This shift comes at a critical time as London seeks to remain relevant amid global competition for tech listings. London IPO activity could jump from September Despite the challenges, Jonathan Parry, a partner in White & Case's Capital Markets group, sees potential in the UK capital. "The inherent strengths of London, including its deep pools of capital and liquidity, are often overlooked. As we have seen from high-profile capital raises this year, the London market functions very effectively for companies that have a compelling equity story and a strong management team," he said. In the face of this mixed performance, UK Public M&A activity has shown signs of recovery. White & Case data shows that Q2 2025 saw a surge in deal volumes, which tripled to 27 deals compared to 10 in Q1 2025. Furthermore, the total value of these transactions surged 353% to £18.5bn, up from £4.1bn in Q1. This activity was largely attributed to falling interest rates, a stable political and regulatory environment, and attractive valuations on offer. According to Parry, the growing IPO pipeline should pick up once again if the recent turbulence calms down. "This would mark a much-needed boost for the City and be a helpful reminder that London remains both Europe's preeminent financial centre and its largest listing venue," he said. Read more: Jobs data increases odds on Bank of England interest rate cut City investment bank Peel Hunt reported that most UK IPO candidates are waiting until September to decide whether to proceed with listings. The firm also said that sentiment around London listings has started to recover following a dip when US president Donald Trump announced sweeping tariffs in April. In its latest 'IPO Speedometer' report, Peel Hunt stated that the UK IPO market remains "selectively open," with several companies looking at a post-summer "window" to potentially debut on the London Stock Exchange. "While we are still some way from a fully open UK IPO market, and there has been limited recent transaction activity, we do see conditions improving meaningfully, particularly around the broader equity market backdrop, which has turned from a headwind to a tailwind, and investor sentiment, which is increasingly constructive," Peel Hunt wrote. UK weighs changes to IPO rules to attract foreign capital Meanwhile, efforts are underway to streamline London's capital markets. The Financial Conduct Authority (FCA) has confirmed plans to reduce red tape, making it easier and quicker for companies to raise funds. Under new rules, companies listed on the London Stock Exchange will no longer need to publish lengthy prospectuses when issuing additional shares. Also, the time between the publication of initial documents and an IPO is set to be halved. The FCA's new measures will also simplify the process for corporate bond issuance to retail investors, and a new public offer platform will help smaller growth companies raise capital more easily. There are also reports that shares in UK-listed companies could soon be traded 24 hours a day under plans from the London Stock Exchange Group (LSEG) to tap into booming demand from night owl traders. The LSEG (LSEG.L), which owns the London stock market, is weighing plans to launch a 24-hour trading platform, according to the Financial Times. This move is seen as a strategic attempt to boost the appeal of the UK's sluggish stock market and attract both overseas investors and younger traders keen on buying British shares at any time of day. The shift in trading patterns, particularly in the US, is reshaping how markets operate. In the US, an increasing number of transactions are being carried out outside traditional working hours by a new wave of Gen Z retail investors using smartphone apps. This has left traditional exchanges exposed to competition, as younger, tech-savvy investors opt for more flexible trading hours. Read more: Why Apple, Amazon and other tech giants are considering bitcoin Cryptocurrency markets, such as bitcoin (BTC-USD) trading, already operate around the clock, making the notion of limited trading hours for traditional equities increasingly outdated. Platforms like Robinhood have also capitalised on this trend, allowing investors to trade stocks during late hours, further adding to the perception that traditional market hours are outdated. At present, London-listed shares only trade between 8am and 4pm. These regulatory changes come at a time when companies in the UK are grappling with increasing uncertainty. A report from EY-Parthenon showed that the number of London-listed companies warning of lower profits has spiked. In Q2 2025, 59 firms issued profit warnings, a 20% increase compared to 49 during the same period last year. EY-Parthenon attributed this rising uncertainty to "rapid and unpredictable policy shifts" that have a "paralysing effect on confidence, decision-making, and spending."
Techday NZ
a day ago
- Business
- Techday NZ
Wise urges New Zealand MPs to end NZD $667m FX fee losses
Wise has urged Parliament to address what it describes as misleading bank fees on foreign transactions, claiming these are costing New Zealanders hundreds of millions of New Zealand dollars each year. The call was made as part of Wise's submission to Parliament's Finance and Expenditure Select Committee on the Financial Markets Conduct Amendment Bill 2025, which is currently under consideration. Wise contends that changes are needed to protect both consumers and businesses who are affected each time a currency conversion takes place, whether through sending money overseas, shopping online, travelling abroad, or operating businesses internationally. Hidden costs Research commissioned by Wise from Edgar, Dunn & Company indicated that New Zealanders lost a total of NZD $667 million to hidden foreign exchange (FX) payment fees in 2023. According to projections, this figure is set to increase to NZD $991 million by 2029 if current practices continue. Wise argues that these losses are primarily due to banks advertising "fee-free" international transactions while actual costs are concealed via inflated exchange rates. Tristan Dakin, Country Manager ANZ at Wise, stated: "New Zealanders think they're getting a good deal because they see 'no fees' or 'zero commission'. But the real cost is hidden in the exchange rate mark-up, which can be vastly different to the rate you find on Google. By ensuring more transparency, parliament can put millions back into the wallets of consumers, while removing barriers for small businesses that want to expand internationally." Regulatory context New Zealand currently has no specific legal requirements in place to tackle the problem of hidden FX costs in cross-border banking and payments. However, Wise's submission follows growing discussions in both local and international contexts about the need to enhance competition and transparency. Last year, the New Zealand Commerce Commission noted there "appears to be room to improve competition" in this area, and the G20 is already working towards making international payments more affordable, faster, and more transparent worldwide. Dakin also commented: "What the banks are doing right now is unfair, misleading, and is somehow perfectly legal. That needs to change, or they will continue to take an unfair share from Kiwi consumers and businesses. With the Financial Markets Conduct Amendment Bill 2025 and the growing international calls for reform, it's only a matter of time before governments all around the world take action on misleading FX fees." He added: "New Zealand has an incredible opportunity to set an example for the rest of the world. These proposed reforms offer a practical, low-cost solution that would help Kiwis make better choices and save money, while driving competition and innovation in the space." Proposed measures Wise's submission recommends several changes be included in the Bill. First, they suggest that all banks and financial service providers should be required to display the full cost of a transfer upfront, showing both fixed fees and exchange rate mark-ups. Wise also calls for a ban on advertising that implies transfers are "fee-free" when costs are actually embedded in the exchange rate. It believes that standardising how prices are displayed would make it easier for consumers and businesses to compare service providers effectively, and that key terms like "mid-market exchange rate" should be clearly defined to maintain consistency across the sector. The G20 has also cited the importance of enhancing cross-border payments, arguing that faster, cheaper, more transparent and more inclusive services would benefit citizens and economies worldwide by supporting economic growth, trade, development, and financial inclusion. Wise referenced this international perspective to highlight the relevance of its recommendations in the New Zealand context. Committee consideration The Financial Markets Conduct Amendment Bill 2025 remains before the Finance and Expenditure Select Committee, which is expected to report later in the year. Wise, supported by the data from its commissioned research, is urging policymakers to act in order to address what it sees as a lack of transparency and competition in cross-border payments. The company's submission is part of a wider movement across several jurisdictions to regulate and clarify the costs of international money transfers and currency exchanges, amid projections of growing sums lost to hidden fees in the years ahead.
Daily Mail
a day ago
- Business
- Daily Mail
Wise co-founder urges investors to reject plan to switch its listing from London to New York
Wise's co-founder has called on investors to reject the plan to switch its listing from London to New York. Taavet Hinrikus is urging a vote against the fintech's move due to concerns over shareholder rights that are tied up with the proposal. Wise's decision to shift its primary listing to the US dealt a body blow to the City when it was announced last month. It will add to the exodus of firms from Britain following the likes of gambling giant Flutter and equipment hire firm Ashtead. Shareholders are due to vote on the plan next week. Wise is led by chief executive Kristo Kaarman, who founded the company with fellow Estonian Hinrikus in 2011. Hinrikus has since left but still owns a 5.1 per cent stake via his firm Skaala Investments. Olivia Rodrigo and Sabrina Carpenter also performed at the British Summer Time Festival in Hyde Park, London. Some 61 per cent of concert-goers have travelled from across the UK to gigs in London so far this summer, according to Live Nation. And 16 per cent have travelled from abroad. One in five adults are spending money on concerts this summer, according to Barclays. And Brits are also set to spend £1.06billion during Oasis's tour, economists at the bank predict. Skaala criticised the plan in a statement made public yesterday – because investors are also being asked to vote on extending additional voting rights to one group of shareholders. Under Wise's dual share structure, those who own 'class B' stocks have greater voting power than those with 'class A' stocks. This arrangement had been due to expire in July 2026, but under Wise's new proposals, it would be extended for ten years. Skaala said it was 'deeply troubled' by Wise's plans, claiming the class B shares move was 'buried in the proposal'. It said the plans would entrench 'disproportionate power in the hands of a few', including Kaarman, and that it was 'entirely inappropriate and unfair' to combine the listing location and governance changes into a single vote. 'This approach diminishes shareholder democracy, contradicts good corporate governance and violates Wise's values,' a Skaala spokesperson said. It added that a number of other shareholders are also opposed to the plans, without giving further details. Skaala said that the extension 'significantly deviates from accepted governance norms' and urged shareholders to reject the proposal unless the issues are separated. Wise said that while it took Hinrikus's views seriously, the dual-class share structure was essential for the company's success. A spokesperson for Wise said shareholders have so far been 'overwhelmingly in favour' of the proposal, and cited the backing of advisory groups including ISS, Glass Lewis and PIRC. Last week, the company suffered a separate setback when it reported lower than expected quarterly profits. The results sent shares plunging and could make prospective investors in New York more cautious ahead of the listings switch.
