UK fintech Wise eyes FTSE 100 listing
Money transfer business Wise said it was consulting with shareholders on a potential FTSE 100 listing.
The fintech said it would need to amend parts of its articles of association and receive approval from the Financial Conduct Authority to join a new listing category.
Wise said it was “extensively consulting with shareholders on the optimal listing arrangements” and planned to come to a decision “in the coming weeks,” as reported by The Times.
The London-based firm has a market value of £9.7bn, making it an automatic candidate for the UK’s flagship index should it pass the tests issued by the FTSE Russell.
A listing from the fintech could provide a major boost to the embattled London Stock Exchange, which was recently snubbed by fintech Klarna for New York.
Wise would mark the first of a wave of fintechs expected to go public in the near future.
However, the firm’s two-tier share structure may be a headache ahead of any listing.
The structure gives Kristo Kaarmann, the co-founder and chief executive, as well as other early investors nine times as many votes per share as more recent shareholders.
However Kaarmann has indicated he might try to extend the existing set-up to maintain his grip on the company.
Kaarmann owns 18.1 per cent of the economic interest in fintech but holds 40.75 per cent of the votes.
Wise also announced in the update that it expects to post 21 per cent growth in active customers to 15m and a 16 per cent boost to underlying income.
On the back of these numbers, the fintech said it could generate income of £1.4bn in the current year.
However, profit margins are expected to fall by one per cent.
The money transfer firm said it expects to deliver underlying income growth of 15 to 20 per cent in the 2026 financial year, with pre-tax profit margins meeting top estimates.
Wise will post its full-year report on June 5.