(Alliance News) - Fintech firm Wise PLC on Thursday unveiled plans for a Main Market float, in what it noted would be the first direct listing for a technology company in London.
Wise, which has recently been rebranded from TransferWise, provides money transfer services.
It argued that a direct listing is a "fairer, cheaper and more transparent way for Wise to broaden its ownership".
"Wise has been profitable since 2017. This growth strategy is self-funded by the organic generation of capital and cash which is reinvested back into our products and infrastructure, marketing, and the further lowering of prices for customers," the company said, adding that it has "no plans to raise primary capital".
No details around timing or price of a potential listing were provided. Earlier this week, Sky News reported that the payments app was looking at a value of up to GBP9 billion.
Upon listing, Wise said it will have a dual class share structure with 'A' and 'B' shares, saying this will allow it to "focus on its mission as it transitions into the public markets".
Wise explained class 'B' shares hold 9 votes per share, are strictly non-transferable and, amongst other voting right cancellation events, expire on the fifth anniversary of any listing. The B shares will not be listed.
All Wise investors, as well as holders of its vested options, as of May 23, will be able to receive 50% of the class A holding in the firm, as well as additional 'B' shares on a one-for-one basis.
This excludes co-founder and Chief Executive Kristo Kaarmann, who is entitled to elect to receive 100% of his class A share holding in the company as well as additional class B shares on a one-for-one basis too.
The structure means Kaarmann can be entitled to more voting rights than other shareholders. However, the CEO's voting rights are capped at one vote under 50% for any shareholder decision.
The use of dual class shares was one of the factors cited for the disastrous debut of food delivery firm Deliveroo PLC.
"Wise is used to challenging convention, and this listing is no exception. We're ten years into building a new way to move money around the world - faster, cheaper, easier and completely transparent. A direct listing allows us a cheaper and more transparent way to broaden Wise's ownership, aligned with our mission," Kaarmann said.
In the year ended March 31, it had 6.0 million users, who between them transferred GBP54.4 billion, up 30% from financial 2020's transaction volumes which totalled GBP41.7 billion.
Revenue during the year rose 39% to GBP421.0 million from GBP302.6 million. It posted adjusted earnings before interest, tax, depreciation and amortisation of GBP108.7 million, up 59% from GBP68.2 million. Its pretax profit more than doubled to GBP41 million from GBP20.4 million.
"For FY2022, Wise expects revenue growth in the low to mid-twenties on a percentage basis," the company added.
"Wise has seen strong demand at the start of FY2022 in terms of personal and business volumes and revenues."
Goldman Sachs International, Morgan Stanley & Co International PLC and Barclays Bank PLC are lead financial advisers on the float, with Citigroup Global Markets Ltd as co-adviser.
Also announcing listings on the Main Market, AIM and AQSE on Thursday were maternity clothing firm Seraphine Group PLC, drug maker Poolbeg Pharma PLC, cannabidiol products supplier Voyager Life Ltd, and bathroom products retailer Victorian Plumbing Group PLC.
The decision by Wise in particular provided a much-needed vote of confidence in the market, after Made.com Group PLC struggled on its debut on Wednesday. The online furniture retailer fell by as much as 8% on Wednesday before recovering to end down 1.5%, as they began conditional trading on the London Main Market. Its stock was 0.6% higher at 198.14p on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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