It was announced on Thursday that Wise, the British-based money transfer company, would be relocating its primary stock market listing from London to the United States. This move was regarded as a significant development, as it placed Wise among a growing number of UK-headquartered companies opting to exit the London Stock Exchange in pursuit of stronger valuations and more favorable market conditions abroad.
Although it had been disclosed in April that the firm was considering its listing options, the decision to shift to the U.S. was received with surprise by many analysts. Wise had first entered the London market in 2021 through a direct listing, a move that had at the time been celebrated as a modern and bold choice. However, since then, the company’s leadership had been engaged in re-evaluating its position, eventually determining that relocating to the U.S. would provide better access to capital and greater investor liquidity. The firm’s co-founder and CEO, Kristo Kaarmann, was quoted as saying that the U.S. capital markets were considered to be the most liquid and deepest in the world, making them the most attractive option for a growing fintech like Wise.
Following the announcement, Wise’s shares experienced a sharp increase in value, climbing by 8.9% to 1,179 pence on the day. This brought the company’s market valuation to over £12 billion, or approximately $16.28 billion. The rally reflected investor approval of the move, as the decision to seek out the U.S. market was seen as a way to unlock greater shareholder value. Despite recent gains, it was noted that Wise’s shares had spent several years trading below their original listing price since the 2021 debut. Over the past 12 months, however, the company had seen a gradual recovery, with its share price having risen around 40%.
The plan to maintain a secondary listing in London was also disclosed, indicating that Wise did not intend to sever ties completely with the UK market. Nonetheless, the primary shift to the United States was being interpreted as a vote of no confidence in London’s competitiveness as a financial hub for high-growth companies, particularly in the tech and fintech sectors.
For the London Stock Exchange, Wise’s departure marked another setback in efforts to revitalize the city’s role as a premier global listing destination. In recent years, a number of companies had either opted against listing in London or had shifted their listings elsewhere. Despite regulatory reforms that had been introduced with the intention of making London more appealing—such as streamlined listing procedures and eased governance requirements—the market had continued to struggle in attracting new initial public offerings (IPOs).
Other recent examples of high-profile listing decisions further highlighted the trend. Unilever, one of the UK’s largest multinational firms, had recently selected Amsterdam over both London and New York for the listing of its ice-cream business. Meanwhile, Shein, the fast-fashion e-commerce giant headquartered in Singapore, was said to be considering a listing in Hong Kong after plans for a London IPO had reportedly run into complications with Chinese regulators. These developments, taken together, suggested that London was increasingly being seen as a less competitive alternative to global peers.
Wise’s announcement contributed to growing concerns about a broader exodus from the London market. Market observers noted that the gravitational pull of U.S. exchanges—fueled by more mature capital markets, greater institutional investor interest, and more consistent valuations for tech companies—was proving difficult for UK policymakers to counter. The UK government and financial regulators had been attempting to position London as a modern, flexible hub for innovation and capital-raising. However, the migration of companies like Wise was seen as evidence that these efforts had yet to yield meaningful results.
In sum, the decision by Wise to pursue a U.S. listing was emblematic of deeper structural challenges faced by the London market. As more British firms sought access to broader investor bases and higher valuations overseas, questions were being raised about the long-term viability of London as a center for global capital. Wise’s move was not only a business decision but also a symbolic moment, reflecting the shifting dynamics of global finance and the challenges facing the UK’s capital markets in a post-Brexit, post-pandemic world.
