The new offering will allow clients of the bank to generate virtual cards on demand through the PWB Virtual Card app. Credit: Niek Verlaan from Pixabay.

UK fintech firm Wise, formerly known as TransferWise, has announced plans to go public through a direct listing on London Stock Exchange.

The payment firm said that is expecting a direct listing rather than an initial public offering (IPO) as it is not seeking to raise new capital.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Direct listing enables companies to go public without issuing new shares.

It allows existing shareholders of the company to sell shares to the public, without the usual lockup-period regulations associated with traditional IPOs.

Wise said in a statement: “By doing a Direct Listing, we are ensuring everyone gets the same opportunity to own a part of Wise as large institutions.

“We’re allowing our existing shareholders to sell on their own terms and allowing the open market to set a price in a transparent way that’s fair for all.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Wise has not revealed a target valuation for the listing. The debut trading price for the firm’s shares will be based on auction.

The deal could value Wise at over $7bn (£5 bn), reported Sky News, citing people familiar with the matter.

The stock will begin trading in London in the second week of July, according to terms seen by Bloomberg.

Wise was launched in 2011 by Taavet Hinrikus and Kristo Kaarmann with the aim of helping people move money across borders and into different currencies more easily and at reduced rates.

It currently claims to have more than 10 million customers.

Recently, the firm expanded its footprint to India with the launch of foreign exchange service.

Last month, the London-headquartered firm partnered with Google Pay to allow Google Pay users in the US to send money to users in India and Singapore.

The same month, Wise joined Temenos MarketPlace with the aim of bringing low-cost international remittances to banks worldwide.