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Highlights
- Revolut founder critiques the UK listing regime, citing cost and inefficiency.
- Prefers US markets for their liquidity and streamlined listing processes.
- Public listing remains a strategic option for providing existing shareholders with an exit.
Revolut (Private), the London-based fintech leader, has shifted focus away from a potential London Initial Public Offering (IPO), with its founder Nik Storonsky openly criticizing the UK's listing framework. In a detailed conversation on the 20VC podcast, Storonsky expressed dissatisfaction with the UK’s financial market infrastructure compared to the US, pointing to inefficiencies and high costs as key barriers.
Challenges with UK Listing Framework
Storonsky highlighted several obstacles within the UK system, including the 0.5% stamp duty tax levied on the transactional value of share purchases—a cost not encountered in the US. Although smaller stocks listed on AIM are exempt, Revolut’s ambitions for a valuation in the range of top-tier blue-chip companies like those in the FTSE 100 mean it would face significant tax implications.
He further noted the UK’s lack of liquidity and a financially burdensome regulatory environment, arguing that these factors make the US a more attractive option for public listings. In Storonsky’s words, the UK listing regime is "much worse than the US, plus it’s much more expensive."
Operating as a Public Company Without an IPO
Despite remaining privately held, Storonsky emphasized that Revolut operates with many of the same transparency and governance structures expected of public companies. While the fintech leader has not formally gone public, a listing remains on the horizon as part of a broader strategy to provide exit opportunities for its shareholders.
Valuation and Future Outlook
Revolut’s most recent valuation reached $45 billion following an employee share offering, cementing its status as one of the world’s leading fintech firms. With aspirations for a valuation potentially surpassing the $100 billion mark, the company aims to position itself among the most valuable global technology players.
As the debate around UK versus US financial markets continues, Revolut's decision to defer a London IPO underscores broader challenges faced by high-growth companies when evaluating their options for entering public markets. Storonsky’s remarks bring renewed attention to ongoing discussions about reforms within the UK listing framework.
