Fintech company Wise was valued at 7.95 billion pounds ($11 billion) on its market debut. It is the company’s first-ever direct listing of a tech company on the London Stock Exchange, and this makes Wise the largest-ever tech listing in London by market capitalization.
The company’s first direct listing on the London Stock exchange left an inevasible impression in London’s booming fintech market and could pave the way for other tech companies to follow, particularly as the initial valuations are well above the $6-$7 billion market expectations from earlier this year.
Shares were priced at 800 pence and were enthusiastically considered by investors, with bids ranging from 100 pence to 1,000 pence.
The opening price of 800 pence was in line with an auction process in the preceding hours, which saw indicated price range between 750-820 pence. As of 11.15 GMT, the share was higher at 830 pence on volumes of 49.5 million.
Wise’s strong outcome could also encourage other fast-growing British firms in the financial technology sector, as it leaves London listings with a record-breaking year.
According to Susannah Streeter, an analyst at Hargreaves Lansdowne, Wise’s performance “is a welcome start for Wise with a market cap of about 3 billion pounds over the private valuation from last year and the first half-hour of trading has been pretty steady and quelled some concerns about volatility.”
She added that “it is hard to find a direct comparable to judge that valuation as the payments company is in a massive state of flux – but therein lies a risk for Wise: there will be a lot of competition nipping at their heels”.
Dan Thomas, Analyst at Third Bridge, noted that Wise has a distinct advantage over peers like Western Union and Moneygram. The fintech company’s origination is completely digital and does not have to maintain a network of physical locations to disburse cash. The company holds balances in countries on popular currency routes to sidestep high fees.
Tech companies’ listing in the UK has part of the British government’s interests, and Wise’s successful performance would help attract more well-known brands.