Wise shareholders overwhelmingly approve plans to ditch UK primary listing
UK fintech Wise has curbed a potential shareholder revolt to seal the transferal of its primary listing to the US despite an investor backlash over additional terms within the proposal.
More than 90 per cent of Class A shareholders and 84.6 per cent of Class B shareholders approved the deal, which will see the firm swap its London primary listing for New York.
The fintech was facing backlash over plans for a ten-year extension to super-voting shares held by only a handful of inside investors, which include Käärmann.
The shares, which represent 90 per cent of total voting rights at Wise, were set to expire in July 2026 but the firm included an extension as a part of the motion to transfer its listing.
Käärmann’s attempt to extend the outsized voting rights sparked fierce backlash from fellow co-founder Taavet Hinrikus, who served as chief executive of the London fintech from its founding in 2011 until 2017
Hinrikus said he was “deeply troubled” over the plans as his investment firm Skaala, which owns a 5 per cent stake in Wise, staunchly opposed the extension.
He accused Käärmann of a “lack of transparency,” adding it was “entirely inappropriate and unfair to wrap these distinct issues together,” referring to the transferred listing and shares extension.
The proposal to shift its primary listing to the US dealt a major blow to the London Stock Exchange last month.
The firm cited “better access to the world’s deepest and most liquid capital market” behind the move as well providing “potential pathway to inclusion in major US indices” and said it would retain a London secondary listing.
Chancellor Rachel Reeves ramped up efforts to galvanize fintech listings as part of the Treasury’s Financial Services Growth & Competitiveness Strategy.
Reeves had previously pledged to make the UK the best place for fintechs to “start up, scale up and to list” but Wise’s move dealt a blow to Reeves hopes for the industry,