July 9, 2021

Wise’s record-breaking direct IPO will suit other tech companies looking to go public in the coming months along with the bankers who manage them and post-Brexit London.

Wise, a cross-border payment services company formerly known as TransferWise, made its market debut on Wednesday and became the largest technology company to be listed on the London Stock Exchange.

Wise’s £7.9 billion valuation and subsequent market performance at its first-ever direct listing in London appear to allay concerns that the company is not as susceptible to technology companies as other locations such as New York and Amsterdam.

Wijayarathna, whose bank-financed many of the London-listed companies, said there are about 12 technology companies, including several fintech companies, that plan to go public in a year or two.

The Wise deal was structured as a sale of existing shares, known as a direct listing, rather than a traditional IPO, which could potentially lead the way for others to follow suit.

Companies like Britain’s Checkout.com and WorldRemit, and Swedish “buy now pay later” giant Klarna, Europe’s largest tech unicorn, are among those considering going public in a year or two.

But while Wise has raised hopes, potential market debutants and their bankers will first watch closely how Wise shares are traded after their initial jump; a steep slide could easily undermine confidence and hurt London’s ambitions.

Wise shares began trading at 800 pence and had risen to 960 pence by 1530 GMT on Thursday.

For more information, read the original story in Reuters.