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London, UK – A significant debate is unfolding within the online payments company Wise, as one of its co-founders, Taavet hinrikus, has publicly urged shareholders to vote against the company’s proposed dual listing in the US adn the UK. The core of his objection lies in what he describes as a lack of transparency regarding changes to the company’s governance structure.
Dual Listing Proposal Sparks Controversy
Wise, a prominent fintech firm listed in London since 2021, announced its intention to pursue a dual listing in the US last month. This move, aimed at expanding its global reach and investor base, has now become a focal point of internal disagreement.
Governance Structure under Scrutiny
Hinrikus, through his investment vehicle Skaala Investments, has raised concerns that the proposal to change the listing location is intrinsically linked to extending the company’s dual-class shareholder structure. This structure,implemented at the time of its 2021 listing,grants enhanced voting rights to certain shareholders. Originally set to expire in July 2026, the proposal seeks to extend these enhanced rights by an additional 10 years. Hinrikus argues that this crucial detail has been “buried in the proposal,” making it less obvious for investors.
in response to these claims, Wise CEO Kristo Käärmann penned a blog post on Monday, asserting that the company’s plans are “set out clearly and transparently.” The differing perspectives highlight a potential clash over the long-term governance and control of the rapidly growing fintech company.
Broader Trends in UK Listings
Wise’s potential shift mirrors a broader trend observed in the UK market. Last year, the construction equipment rental company Ashtead made a similar move towards a US listing. Furthermore, other notable companies, including the gambling group Flutter Entertainment and building materials provider CRH, have opted to move their primary listings entirely to the United States.
This exodus of companies from the London Stock Exchange comes at a time when the UK government is actively seeking to reform its regulations to stimulate economic growth. Chancellor Rachel reeves recently addressed city bosses, characterizing existing rules and red tape as a “boot on the neck” of businesses, perhaps stifling innovation across the UK without bold reforms.
The London Stock Exchange Group has declined to comment on the ongoing situation. The outcome of Wise’s shareholder vote will be closely watched as an indicator of investor sentiment regarding governance and the attractiveness of the UK’s listing environment.