Wise, a London-based British banking fintech start-up formerly known as TransferWise, has been exploring an option to float its stocks in a London IPO (Initial Public Offerings) as early as by May this year, in a deal that could value the eleven-year old financial technology company between $6 to $7 billion, a press agency report had unveiled late on Thursday citing two unnamed sources given the scale of sensitivity of the issue.
Apart from that, the press agency report had also quoted one of the sources as saying that the London-based fintech firm, widely known for its cross-border transactions, had already appointed two leading US lenders and financial services providers such as Goldman Sachs and Morgan Stanley to oversee the proceedings, while the British fintech firm was strongly favouring London as a potential venue of its IPO (Initial Public Offerings) despite a myriad of pitfalls in LSE offerings over recent years.
Nonetheless, as a pandemic-battered 2020 appeared to have muscled up appetite for new tech stocks in both UK and the US this year, a potential LSE (London Stock Exchange) floatation of Wise's shares would dish up London as a lucrative HubSpot for tech stocks this year, as a flurry of tech start-ups such as Deliveroo, Moonpig alongside Trustpilot had already rendered their LSE listings earlier this year, though Deliveroo shares were slumped as much as 30 per cent at their LSE debut.
London fintech bank Wise mulls London IPO
In tandem, although several analysts were quoted saying that a clattering collapse in Deliveroo's market cap on its LSE debut would unlikely to impact Wise’s decision, the press agency report had also quoted several sources as saying that the British fintech banking firm that rebranded from TransferWise earlier this year, was still contemplating Amsterdam and New York as alternative venues to float its stocks in public trading.
Wise had raised a stark upsum of $319 million at its latest fundraising campaign last year, valuing the company at $5 billion, while the London-based financial technology firm founded back in the 2010s, had also reported a net profit of £21.3 million on fiscal Q4, 2020, marking up its fourth straight year of growth in a row, the company’s annual statement had revealed.