The company is taking the direct listing route as opposed to an initial public offering because it doesn’t need to raise any new capital, CNBC reported. The direct listing route will make it the first tech company to do so in London, Wise claims.
Wise was started up in 2010 and provides money transfer services to its 10 million customers. The company allows its users, which span from individuals to businesses, to use these services abroad without hidden charges.
“We chose a direct listing because everyone has the same opportunity to own a part of Wise, from large institutions to customers. It’s less expensive than an IPO which helps us keep costs down and ultimately helps us on our mission to lower prices,” Kristo Kaarmann, CEO and co-founder of Wise said on a conference call with reporters, CNBC reported.
The company sold some of its stakes in a $319 million secondary deal that saw its valuation rise to $5 billion, CNBC reported in July 2020. With this direct listing, the company is hoping to see its valuation climb to £9 billion, Sky News reported. However, the pricing ultimately will be determined by the market.
In other recent fintech news, 10x Future Technologies, a financial technology venture started by former Barclays CEO Antony Jenkins, has raised £132.5 million ($186.6 million USD) in a Series C round co-led by BlackRock and CPP Investment Board according to a press release.