Last week, money transfer giant Wise announced its decision to relocate its primary stock listing from London to the United States, marking another significant departure from the UK market as companies are seeking greater valuations and investor access overseas.
The fintech company, valued at over $16.31 billion following an 8.9% surge in share price to 1,179 pence after the announcement, will retain a secondary listing in London while establishing its main presence on US exchanges. The move comes just four years after Wise’s 2021 debut on the London Stock Exchange.
Kristo Käärmann, Wise’s CEO and co-founder, attributed the decision to America’s position as home to “the world’s deepest and most liquid capital markets,” which facilitates easier share trading for investors. He emphasized that regulatory differences weren’t a factor, stating that “anything that can be done in the U.S., I think, can be done in the UK as well, so that is not the reason.”
The departure represents a fresh setback for London’s financial market, which has witnessed an exodus of major companies despite recent regulatory reforms aimed at making the city more competitive. The UK government introduced substantial changes to listing rules last year in an effort to attract more initial public offerings.
Despite the relocation, Wise reported strong financial performance with underlying pretax profit climbing 17% to $382 million for the year ending March 31, 2025. The company’s shares have gained approximately 40% over the past year, though they spent years trading below their initial listing price.
Industry observers view Wise’s departure as symptomatic of broader challenges facing the London Stock Exchange, while the implications extend beyond individual companies. As more tech firms migrate overseas, London’s appeal as a destination for high-growth investments diminishes, potentially affecting index funds like the FTSE 100. Some analysts suggest this trend could accelerate unless the UK market demonstrates it can compete with the investment appetite and liquidity offered by US exchanges.
The company’s competitor Revolut has similarly been expanding aggressively into the US market, highlighting a broader trend among British fintech firms seeking growth opportunities across the Atlantic.
As London grapples with retaining its status as a global financial hub, Wise’s departure serves as both a wake-up call and a test case for whether other high-growth UK companies will follow suit in pursuing American listings.
