Kalkine : FTSE 100 Faces Pressure as Wise Shifts Primary Listing to US

Highlights

• Wise announces plan to shift its primary listing from London to the US, retaining a dual listing structure
• The fintech sector’s growing presence in the US prompts major UK firms to seek enhanced capital market access
• London’s stock exchange experiences continued departures amid concerns about valuation and liquidity

The financial technology sector continues to reshape equity listings, with Wise (LON:WISE) becoming the latest UK-based firm to redirect its market strategy. Operating in the payments and money transfer space, Wise has announced plans to shift its primary listing to the United States, while maintaining a secondary listing on the London Stock Exchange. This development follows recent moves by other large firms such as Ashtead Group (LON:AHT), Flutter Entertainment (LON:FLTR), and Indivior (LON:INDV), and highlights the competitive pressure London faces in retaining flagship technology and financial services companies. The broader implication touches several indices, including the FTSE 250 and the possibility of inclusion in the FTSE 100.

Wise Repositions for US Capital Market Access

Wise disclosed its intention to adopt a dual listing format, with the US becoming its principal listing location. The rationale focuses on increasing awareness in North America and enhancing access to deeper and more liquid capital markets. The company stated that visibility in the US aligns with its growth strategy, as it views the region as the most dynamic market for its product suite. At the same time, it reiterated its commitment to maintaining operations and ownership access within the UK through a retained listing on the London Stock Exchange.

Since its debut in 2021, Wise has maintained a strong presence in the financial technology sector, initially listing with a valuation of £8.75bn. The recent upward movement in its share price added further strength to its valuation, which now exceeds £12bn. The company emphasized that the UK would remain a strategic base for its technological and financial infrastructure, underscoring the significance of domestic talent in sustaining global growth.

Broader Shift Away from London Listings

Wise’s decision is part of a broader trend among UK firms seeking listing advantages abroad. Ashtead Group previously transitioned its primary listing to the US, citing similar motivations related to liquidity and valuation enhancement. Flutter Entertainment and CRH (LON:CRH) followed suit, with each firm adjusting its listing to align with business interests and capital market conditions across the Atlantic.

More recently, Indivior announced it would discontinue its London listing altogether, building on its earlier shift to the US. Separately, Cobalt Holdings, a firm focused on metals investment, opted to cancel its London listing plans that were expected to generate significant capital, highlighting hesitancy around the local exchange environment.

Impact on UK Technology Listings

Wise, previously known as TransferWise, represents a landmark case for UK tech listings. Its 2021 debut marked the largest ever listing of a UK-based technology firm. However, its strategic pivot reflects deeper concerns about London’s role as a tech listing venue. Last year, Arm Holdings—headquartered in Cambridge—chose to list in New York, avoiding a UK public offering despite its domestic origins.

These developments raise questions about the competitiveness of the London exchange for fast-growing tech enterprises. Market participants cite higher valuations, stronger demand, and wider investor bases in the US as key drivers for such decisions.

FTSE 100 Eligibility Impacted by Listing Change

Wise’s shift to a US primary listing introduces technical challenges regarding its eligibility for inclusion in the FTSE 100. As one of the largest fintech firms operating in the UK, its dual listing may limit its ability to enter the index, which remains an important benchmark for publicly listed companies based on their UK market presence. The company acknowledged that US index inclusion may enhance share liquidity, yet the structure could reduce domestic benchmark representation.

Such a move underscores the dynamics between global capital market access and local index inclusion. Wise plans to hold a shareholder vote on the proposed structure, which, if approved, would mark another significant change in the composition of UK financial markets.

Tech and Financial Services Talent Remain Anchored in the UK

Despite relocating its principal listing, Wise reaffirmed its operational ties to the UK. It emphasized the availability of top-tier talent in UK financial services and technology sectors. The company indicated that ongoing investment in its UK base would support both domestic and international expansion.

As firms recalibrate their listing strategies to match evolving market conditions, the UK continues to play a critical role as a hub for operational excellence in financial services. However, the frequency of listing relocations brings added attention to structural and regulatory considerations within the FTSE 100 and other indexes impacted by such corporate transitions.

FTSE 100 dynamics continue to evolve as leading companies adapt to global capital flows and market positioning strategies.