UK Fintech Wise (LON: WISE), which has become known for its focus on low-cost international money transfers, is exploring a step toward joining the FTSE 100, the UK’s stock index.
The company announced it has been “extensively consulting with shareholders on the optimal listing arrangements,” with a decision expected in the coming weeks, as reported recently by The Times.
With a market valuation of £9.7 billion, Wise appears to be a strong contender for the index, provided it meets the criteria set by FTSE Russell.
However, this potential listing comes with regulatory and structural hurdles that could shape its trajectory.
To proceed, Wise must amend its articles of association and secure approval from the Financial Conduct Authority (FCA) to enter a new listing category.
This move could breathe new life into the London Stock Exchange (LSE), which has faced challenges in retaining high-profile tech listings.
Notably, fintech firm Klarna recently opted for a New York debut, underscoring London’s struggle to remain a global financial hub post-Brexit.
A successful FTSE 100 listing for Wise could signal a resurgence, spotlighting the city’s appeal to innovative firms.
Yet, a key obstacle looms: Wise’s two-tier share structure.
Currently, co-founder and CEO Kristo Kaarmann, alongside early investors, holds B-shares that grant nine times the voting power of the A-shares owned by newer shareholders.
Kaarmann, with an 18.1% economic stake, wields 40.75% of the voting rights—a setup more common in U.S. tech firms than in the UK, where investors typically prefer equal voting power.
This arrangement is set to expire in July 2026, when all B-shares will convert to ordinary A-shares, diluting Kaarmann’s control.
However, he has hinted at pushing to extend this structure, a move that could spark shareholder resistance and complicate FCA approval.
Wise’s potential FTSE 100 entry reflects its evolution from a startup to a key fintech player, serving 12.8 million customers and processing £118.5 billion in cross-border transactions in fiscal year 2024.
For London, it’s a chance to reclaim some ground in the global listings race.
But the outcome hinges on navigating shareholder consultations and regulatory scrutiny, particularly around Kaarmann’s role and overall influence.
As the decision nears, Wise will aim to balance sustainable growth with governance norms in a bid to cement its place among the UK’s leading Fintechs.
