Wise`s Direct Listing

Case Code: FINC202
Case Length: 13 Pages
Period: 2010- 2021
Pub Date: 2023
Teaching Note: Available

Price: Rs.300
Organization: Wise Plc.
Industry: Financial Services
Countries: United Kingdom
Themes: IPO, Going Public

Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

Competition

In the UK, the fintech industry was one of the fastest growing industries (Refer to Exhibit III). It included peer-to-peer lending (P2P) companies such as Funding Circle and Zopa, payments firms such as GoCardless, and crowd investing firms such as Crowdcube..

Wise’s Business Model

For transferring money from one country to another, consumers were required to pay various hidden fees (including services charges, unfavorable exchange rates, and additional fees on credit or debit card usage) charged by the traditional banks and money exchange services. Since its inception, Wise’s objective was to reduce the costs involved in money transfers and provide relief to millions of expats , small businesses, and holidaymakers, who exchanged their money on a regular basis..

Direct Listing of Wise

Direct listing was not a new concept, it had been there since 1984 when Ben & Jerry, a US-based Ice cream manufacturing company, raised capital of US$ 750,000 through a direct listing. After almost 34 years, in 2018, Spotify, a Sweden based music streaming company, became the first company in the US to use this method and get listed on the New York Stock Exchange (NYSE)..

Looking Forward

On July 7, 2021, the direct listing of Wise was done successfully, and its shares closed at £8.8 . After being listed on the LSE, the share price showed an upward momentum and reached £11.5 in September 2021. The share price then moved downward and by mid-April 2022, it reached £4.4 ..

Exhibits

Exhibit I: Timeline of Wise
Exhibit II: Selected Financial Information of Wise Year Ended March 2021
Exhibit III: Fintech Industry in the UK
Exhibit IV: Wise’s Fees structure
Exhibit V: Wise Product Details
Exhibit VI: Timetable of Wise’s OwnWise Programme for European Union Customers
Exhibit VII: Share Price Movement of Wise

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