London IPOs: Why Tech Firms Are Choosing Elsewhere
- British fintech company Wise is set to move its primary listing from London to New York, adding to the growing trend of firms leaving the London Stock Exchange...
- Swedish fintech giant Klarna also intends to go public in New York, mirroring the path of Spotify, which listed on the NYSE in 2018.
- artis Partners managing partner Victor Basta saeid that the U.S.
Wise‘s move to list in New York highlights a critical shift: Tech firms are increasingly drawn away from London, signaling a potential fintech exodus. This trend, spearheaded by giants like Wise and mirrored by others such as Arm and Klarna, is driven by the promise of superior valuations, deeper capital pools, and a more risk-tolerant investment environment in the US. While the NYSE dwarfs the LSE in market capitalization,with about $27 trillion versus $3.5 trillion, the impact on the UK’s ability to retain high-growth companies is substantial. The government may need to incentivize firms to stay local. News Directory 3 is tracking if this is the case or an isolated trend. Discover what’s next for the London Stock exchange.
Wise Eyes US Listing: A Fintech Exodus from London?
Updated June 06, 2025
British fintech company Wise is set to move its primary listing from London to New York, adding to the growing trend of firms leaving the London Stock Exchange (LSE). this follows similar moves by chip designer Arm, which opted for a New York IPO in 2023, and Just Eat Takeaway, which departed the LSE for amsterdam.
Swedish fintech giant Klarna also intends to go public in New York, mirroring the path of Spotify, which listed on the NYSE in 2018. The attraction for these companies lies in the promise of larger valuations, greater capital availability, and a stronger appetite for risk among investors.
artis Partners managing partner Victor Basta saeid that the U.S. economy is outperforming the EU, leading to higher valuations for companies listed there. The NYSE boasts a market capitalization of approximately $27 trillion, significantly larger than the LSE’s $3.5 trillion.
Wise CEO Kristo Käärmann said the move would tap into the largest market prospect and provide better access to the deepest, most liquid capital market.
serial entrepreneur Andrey Korchak noted that U.S. investors often embrace a ”revenue-before-profit” strategy,unlike their European counterparts who typically seek immediate revenue. Korchak believes this risk aversion hinders the growth of startups in Europe.
Sean Reddington, co-founder of Thrive, expressed concern that Wise’s move could exacerbate the problem, perhaps leading to a ”brain drain” of capital and talent.He urged the government to provide incentives for tech firms to list in the U.K.
“Wise’s move to the US signals a worrying trend. It threatens a ‘brain drain’ of capital and talent, making it harder for growth-stage VCs to invest in UK scaleups without a clear US exit plan.”
What’s next
The trend of fintech companies seeking US listings raises concerns about the future of the London Stock Exchange and the UK’s ability to retain high-growth tech firms. Government action and incentives might potentially be necessary to encourage companies to remain in the UK.