Wise direct listing set to value the fintech firm at $11 billion

Wise logo is seen on a smartphone in front of a displayed stock graph in this illustration

Wise shares were indicated to open at 800 pence on Wednesday, which would give the financial technology company a market capitalisation of 8 billion pounds ($11 billion), according to Refinitiv prices.

An auction process has begun to determine the price of Class A Wise shares ahead of their official London trading debut and the indicated price was 800 pence at 0745 GMT. The bid-ask spread in the auction was as wide as 450 pence to 1000 pence.

Wise shares, which are officially due to start trading at 1000 GMT, is set to crown a record breaking year for London listings and could pave the way for several other fast-growing British firms in the financial technology sphere, a dozen investors, entrepreneurs and experts told Reuters.

The cross-border payments company, one of Britain’s most well-known fintech unicorns, last month launched direct listing on the London Stock Exchange, which allows for a listing without a public offering of shares.

“(We) could see the valuation touch 9 billion pounds through the course of the day,” said John Woolfitt, director at Atlantic Capital in London. “We are bullish on the firm and the longer-term prospects beyond today.”

Wise, which began life as Transferwise, was valued at 5 to 6 billion pounds in April, sources told Reuters.

Several tech companies including Deliveroo (ROO.L), Trustpilot (TRST.L) and Moonpig (MOONM.L) have already listed in London this year and helped push initial public offerings (IPO) to a record high.

“It’s definitely helpful to have well-known brands with strong success stories on domestic markets. They are few and far between so far, but the more that come to market the better,” said Daniel Turgel, a partner in the M&A and corporate practice at White & Case.

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