Wise, the London-based money-transfer company, announced Thursday that it will keep its secondary listing on the London Stock Exchange. However, the company plans to make the U.S. its primary listing location. This move reflects a growing trend among firms seeking better valuations and stronger liquidity outside London’s markets.
Growing Trend of Companies Moving Listings to the U.S.
Wise joins several other large companies that have recently moved their main listings to the U.S. These include online gambling firm Flutter Entertainment Plc., plumbing supplier Ferguson Enterprises Inc., and building materials company CRH Plc. Drugmaker Indivior Plc. also said this week it will cancel its secondary London listing, just a year after shifting its primary trading to the U.S.
Together, these companies represent a combined market value of about $100 billion. By comparison, London’s total market value stands at roughly $3.5 trillion, according to Bloomberg data. The London Stock Exchange did not respond to requests for comment.
Wise CEO Highlights U.S. Market Opportunity
Kristo Käärmann, Wise’s co-founder and CEO, said the U.S. primary listing will accelerate the company’s mission and provide strategic and capital market advantages. He added that the U.S. is the largest market opportunity for Wise’s products globally.
Wise Shares Hit Record High Amid Announcement
Following the announcement, Wise shares surged as much as 12% in early London trading, reaching a record high. Trading was temporarily suspended due to a trading limit. Wise went public in the UK in July 2021, and its shares have gained more than 40% since then, despite trading mostly below their initial listing price.
Move to Increase Liquidity and Investor Access
Wise said the U.S. listing will allow more institutional and retail investors to buy its shares. Currently, many U.S. investors cannot easily trade Wise stock. The company expects the move to boost liquidity and offer existing shareholders more flexibility in buying and holding shares.
Morgan Stanley analyst Adam Wood called the move positive, citing the expected rise in liquidity and visibility.
Aim to Join Major U.S. Indices
Wise also hopes that its U.S. listing will open the door to inclusion in key U.S. stock indices. Being part of these indices would further increase demand and liquidity for its shares. Shareholders will vote on the listing proposal in the coming weeks, with more details expected later this month.
Commitment to London Market Remains Strong
Despite the shift, Käärmann emphasized Wise’s continued commitment to the London and UK markets. He said the company views the U.S. listing as an addition rather than a replacement.
Regulatory Changes Affect Wise’s FTSE 100 Eligibility
Wise’s board began discussing the move after new UK regulations last year reclassified the company’s shares. This change makes Wise ineligible for the FTSE 100 index, limiting trading opportunities for index-tracking investors. To regain eligibility, Wise must get approval from the UK Financial Conduct Authority (FCA) and update its articles of association.
Analysts See Liquidity and Ownership as Key Drivers
Hannes Leitner of Jefferies Financial Group noted that while a dual listing raises Wise’s profile in the U.S., gaining better liquidity and addressing ownership structure are more important reasons for the move.
CEO’s Voting Control and Ownership Structure
Wise’s CEO holds about 50% of the company’s voting rights, a fact that has drawn some criticism. UBS analyst Justin Forsythe said the U.S. listing would help maintain this ownership structure while improving liquidity.
Company Profile and U.S. Market Potential
Founded in 2011, Wise is valued at around 11 billion pounds ($15 billion). It employs about 1,000 people in London, with its Tallinn office in Estonia capable of housing 2,200 more.
Wise’s Chief Financial Officer Emmanuel Thomassin told Bloomberg News that the U.S. market has huge potential. “The U.S. has 100 million customers and 4,000 banks,” he said, highlighting the opportunity for growth.
