The shares of London-listed Wise, which intends to list in the US, surge

The London stock market's suffering is exacerbated by fintech sensation Wise's intentions to go public in the US

Shares of Wise, formerly known as TransferWise, have increased by more than 12% this morning, June 5, as the payments company appears to be the most recent well-known business to leave the London stock exchange.

A market coup occurred in 2021 when Wise (LON:WISE) went public in London at a valuation of £8 billion. The goal of then-prime minister Rishi Sunak was to entice international tech firms to list in the capital.

As of yesterday's close, Wise's market capitalization stood at 11.05 billion, up 35% since its initial listing. Wise is now worth more than £12 billion as a result of this morning's share price movements.

London's portion of this value, however, appears to be declining because Wise shares will be listed both in the US and London.

"Today we are announcing our intention to dual list our shares in the US and UK," Wise CEO and co-founder Kristo Krmann stated in the company's annual results, which were made public today. "We think that adding a primary US listing would help us expedite our mission and provide Wise and our owners with significant strategic and capital market advantages.

According to this morning's transactions, Wise's value has increased from just over 11 billion yesterday to over 12 billion. Nevertheless, the news that a dual listing is being sought intensifies the exodus from the London stock exchange.

"A dual listing renders the company ineligible for FTSE 100 inclusion, but a secondary listing will remain in London," says Matt Britzman, senior equity analyst at Hargreaves Lansdown.

Since the London exodus, wise dual-listing has been adopted.

Wise is the most recent company to express their negative outlook on the London stock market.

The City's hopes of securing a huge 50 billion listing were dashed last month when it was revealed that Shein preferred Hong Kong over London.

In an effort to increase its valuation, mining behemoth Glencore (LON:GLEN), a mainstay of the FTSE 100, proposed in February that it might relocate its primary listing to New York. The decision by chipmaker ARM to list in the US and other countries is the reason behind London's difficulties in luring domestic companies to list.

The perceived lack of interest among UK investors is the London market's problem. According to a January Aberdeen analysis, UK retail investors have the lowest exposure to equities of any G7 company (as a percentage of wealth), at only 8% (excluding pensions). That's equivalent to 33% for US investors.

According to Britzman, "maintaining a presence in London makes sense, but it does little to sugarcoat the fact that yet another tech firm listed in London is looking across the Atlantic for better valuationsa story thats becoming all too familiar."

For Wise specifically, listing in the US would also provide a business advantage. According to Krmann, "these include helping us drive greater awareness of Wise in the US, the biggest market opportunity in the world for our products today," and providing Wise with access to "the world's deepest and most liquid capital market."

Which fintech companies are eligible to list in London?

The loss of one of its biggest fintech companies that are publicly traded would surely be a setback for the London Stock Exchange.

However, a number of fintech companies have the potential to revitalize London's initial public offering (IPO) market by listing in the city.

One of these is Monzo, which is reportedly still debating between New York and London. After releasing impressive results on June 2, CEO TS Anil played down rumors of an impending IPO. However, with revenue up 48% to 1 point 2 billion, there is growing conjecture about when (and where) the company, which was valued at 4 point 5 billion last year, will go public.

The London-based credit scoring app ClearScore is also laying the foundation for a listing in the upcoming years, and CEO Justin Basini is adamant about a London listing.

The size of the US market isn't always seen as a benefit by Basini. He told BFIA in February that "The attention you get at a smaller market capitalization is much greater than in the US, even though you still get all the international investors looking at IPOs in London."

Smart yearly outcomes.

Although the news has focused on Wise's plans to list shares in the US, the company's other positive results have also contributed to the rise in Wise stock this morning.

Underlying operating profit climbed 13 percent to 296 point 9 million, while revenue climbed 15 percent to 1 point 2 billion. Differing earnings per share were 39point 73p after post-tax profits rose 18% to 416point 7 million.

At 332 point 7 million, the underlying free cash flow increased by 1534 point 7 percent.

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