Company said that it doesn’t intend to raise primary capital
Wise expects to trade on the London Stock Exchange. (Credit: Kaihsu Tai/Wikipedia.org)
British fintech company Wise (formerly TransferWise) has revealed plans to become a publicly listed company with trading on the London Stock Exchange (LSE) through direct listing of its shares.
The company said that compared to a conventional initial public offering (IPO), a direct listing is a fairer, less expensive, and more transparent way for it to go public.
Wise said that by becoming a publicly listed firm, it will broaden its ownership to support its goal of moving money around the world quicker, cheaper, and more easily.
The money transfer service provider intends to set up a customer shareholder programme called OwnWise for rewarding customers who join as shareholders after admission to LSE for supporting its long-term mission.
OwnWise will be open for pre-applications from eligible customers in the UK, said the company.
The customer shareholder programme is said to give participants the opportunity to get bonus shares in the company, which represent 5% of the value of the shares they purchase and hold for at least 12 months, up to a cap of £100.
According to Wise, all its team of current and previous employees and other existing investors, who hold options and shares in the company, will be offered time-limited enhanced voting shares.
The fintech company said that the direct listing is possible because of its sustainable approach to growth. Profitable since 2017, the company has a 54% compound annual growth rate in its revenue over the last three years to reach £421m in FY2021.
Wise, which claims to cater to 10 million customers globally and sends more than £5bn per month across borders, disclosed that it doesn’t intend to raise primary capital.
Wise CEO and co-founder Kristo Käärmann said: “Wise is used to challenging convention, and this listing is no exception. We’re ten years into building a new way to move money around the world – faster, cheaper, easier and completely transparent.
“A direct listing allows us a cheaper and more transparent way to broaden Wise’s ownership, aligned with our mission.
“We’re fixing a huge, structural problem on a global scale, and one which requires enormous discipline to solve. Operating sustainably, with a profit margin, helps us track our journey to lower prices for customers as we scale and remove costs.”