Share trading in money transfer business Wise (WISE) will kick off later today after the company saw its stock admitted to the London Stock Exchange (LSE) in what will be seen as a huge test of investor’s appetite for high-growth fintech firms.
The direct listing of its 994 million shares has been given a reference price of 800p, which is an estimated value from the LSE rather than a fixed price, as would be the case in a normal IPO, or initial public offering. This would give the company a market value of around £8 billion, according to Refinitiv prices.
Where the price goes today is anybody’s guess with the bid-offer spread in the auction as wide as 450p to £10 at one point.
UK UNICORN GOES PUBLIC
The cross-border payments company, formerly known as Transferwise, is one of the UK’s best-known fintech unicorns, which is a private business worth at least $1 billion, or about £600 million. It launched its direct listing last month on the LSE, which allows for a listing without a public offering of shares.
The company had been valued at between £5 billion to £6 billion in April, according to Reuters.
Several tech platform companies, including Deliveroo (ROO), Trustpilot (TRST) and Moonpig (MOON) have already listed in London this year.
