Wise worth €9.3 billion on London Stock Exchange debut
Wise, the international money transfer service founded by Estonian entrepreneurs, entered the London stock market Wednesday, valued at £8 billion, or €9.3 billion, in a key post-Brexit test for the sector.
The global money transfer specialist, formerly known as Transferwise, launched at £8 per share under a so-called direct listing, which does not seek to raise capital but enables public trading.
The operation is cheaper and more transparent than a traditional initial public offering that involves issuing of new shares, the company said.
The valuation increased in initial trading with the group's share price rising 1.6 percent.
"The Wise listing will be another test for London as a fintech hub, as the United Kingdom grapples with its post-Brexit status in an era when it has struggled to attract fast growing companies looking to launch an IPO," said Hargreaves Lansdown analyst Susannah Streeter.
Wise, founded in 2011 as TransferWise, had previously been valued at $5 billion, or €4.3 billion euros.
The firm has six million customers and 2,400 employees worldwide.
Unlike many fintech companies that struggle to generate a profit, Wise has been profitable since 2017.
The group has won customers during pandemic lockdowns as people sought alternative ways of transferring cash.
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Helen Wright