While key details of the company’s prospective public markets debut have yet to be finalised, Goldman Sachs is understood to be well-placed for a leading role on the deal. A special purpose acquisition company (Spac) is also likely to be an option for TransferWise. TransferWise was valued at $5 billion (£3.7bn) in a secondary fundraising just five months ago. An IPO is unlikely to take place until well into 2021.
The London Stock Exchange and Downing Street are desperate to convince TransferWise’s founders to list in the UK.
According to Sky News, UK Prime Minister, Boris Johnson, hosted a call on 18 December, with some of the UK’s “most prized tech companies”. Deliveroo, Oxford Nanopore and Revolut were a part of this call where they were intrigued to sell the City’s credentials to the sector. Kristo, TransferWise’s chief executive, was also among those in attendance. Some other participants such as Darktrace, Deliveroo and Trustpilot, have already hired bankers in preparation for going public
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TransferWise is being looked upon as an important company to persuade to float in London because of its rapid international growth and record of innovation in key areas of financial services.
In July, D1 Capital Partners, which placed substantial bets on some of the world’s biggest tech companies, bought a $200 million stake from other TransferWise investors. That deal came in the wake of TransferWise securing a licence from the Financial Conduct Authority (FCA) to offer investment products. However, the firm has no plans to become a full-fledged bank. A flotation would make both of the founders “paper billionaires” if estimates of the size of their shareholdings in TransferWise are correct. They are thought to own roughly 40% between them.
While they have been open about the idea of an IPO being a natural long-term option for the company, they have made it clear that there has been no pressure on them to accelerate their plans.
The rise in tech flotations, particularly in the US, is said to have persuaded the founders and some of their shareholders that it is an ideal time to go public.
