Money transfer company Wise has announced plans to join the London Stock Exchange in what could be the largest UK listing to date this year.

The announcement of its intention to float follows similar announcements from four other companies looking to profit from an IPO.

bathroom retailer Victorian Plumbing; high-end maternity retailer Seraphine, favored by the Duchess of Cambridge; Dublin-based drugmaker Poolbeg and cannabidiol supplier Voyager Life all revealed plans to float on Thursday.

Wise founders

Initial public offerings (IPOs) have skyrocketed in recent months despite the global pandemic, with companies keen to try to earn some of the billions accumulated by investors during the Covid crisis.

According to a recent report by investment analysts at Liberum, private investor bank deposits stood at £ 214 billion at the end of April, to which is added € 506 billion (£ 506 billion) in savings in the eurozone.

Wise is said to be the first fintech company to be listed on the London Stock Exchange and could be the biggest IPO of the year – with an estimated value of up to £ 9bn – eclipsing the price of £ 7.6bn. pounds sterling from Deliveroo in March.

Bosses said they expect details to be finalized by July 5, with the company aiming for a free float of at least 25%.

Flotation Deliveroo

(PA wire)

Co-Founder and CEO Kristo Kaarmann said, “Wise is used to defying convention, and this list is no exception.

“Direct listing allows us to expand ownership of Wise in a less costly and more transparent manner, in line with our mission. “

London is trying to attract more tech companies to join its leading market, with new listing rules allowing founders to retain more control over their business while still benefiting from profitable listing.

Deliveroo founder Will Shu said he chose London to register because it would allow him to sell a significant stake in the company while retaining larger voting rights for shareholders for three years on the shares he still owns.

Victorian Plumbing also revealed plans to join the AIM junior market later this month with a value of around £ 850million. The listing is expected to bring in £ 285.9million to founder and chief executive Mark Radcliffe.

He said: “The overwhelmingly positive reaction to our IPO has been a lesson in humility and it is amazing to see the support and enthusiasm around our strategic plans. “

Some analysts have suggested that there may be too many IPOs currently on the market, with some struggling to keep up with the listing.

Investing in an IPO that is listed immediately before or during a period of turmoil presupposes poor long-term share price performance, while investing in an IPO shortly after such a period (like this year and up) offers an attractive configuration

David Mak, Liberum

Big names will join the London Stock Exchange this year, including Moonpig, Dr Martens, Virgin Wines, Trustpilot and cybersecurity giant Darktrace.

The majority performed well, although Deliveroo saw a drop of more than 30% on its opening price. Today, shares remain down 34% from the launch of 390p per share. made its own stock market debut on Wednesday, with shares down 7% from its opening price of 200p per share. On Thursday, shares were at 199p.

By comparison, Moonpig shares started trading in February at 350p-a-pop and are at 463p today.

Darktrace is listed at 250p per share and is now at 421.75p on Thursday noon.

David Mak, Research Analyst at Liberum, said: “Investing in an IPO that is listed immediately before or during a period of turmoil presupposes poor long-term stock price performance, while investing in an IPO. shortly after such a period (like this year and the next) offers an attractive setup.

“We find that IPOs in the first two years after a bear market (a downturn) work better, and that UK IPOs perform better over the long term than European IPOs and US – matching or exceeding overall market returns. “

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