Revolut, one of Europe’s most significant fintech
firms, might skip a London IPO in favor of New York if the CEO’s the CEO’s
comments are anything to go by. Nikolay Storonsky has criticized the UK market for its
lack of competitive edge, citing stamp duty and limited liquidity as key
deterrents.
His comments highlight a growing trend of British tech
companies considering US markets for their public debuts. Storonsky highlighted
the challenges of listing in London in a recent report by CityAM. He mentioned that if he gets a better product from the UK, he will list it there, but he insists that the US market offers better conditions than those in the UK.
Revolut’s CEO Critiques London
He pointed to the UK’s 0.5% stamp duty on share
transactions, questioning how London could compete with the more attractive
trading environment in the US.
This isn’t the first time Revolut has raised concerns.
Earlier this year, the company reportedly joined other fintech players in
calling for the removal of stamp duty. Despite recent government efforts to
make London more appealing, Storonsky remarked that these changes might not be
enough to retain British tech stars.
Storonsky revealed that if he were founding Revolut
today, he’d start in the US, a stark contrast to the company’s London roots. He
named US banking giants like JP Morgan and Brazilian neobank Nubank as
Revolut’s key competitors.
The potential move to list in the US mirrors decisions
by other British firms, such as chipmaker Arm, which recently opted for a
Nasdaq IPO. According to Revolut CEO, the US’s deeper capital pools and broad investor interest make it an attractive option for companies aiming
for successful debuts.
London Struggles to Attract Listings
The London Stock Exchange has faced a dry spell this
year, with only 14 new listings as of now. Outflows from UK equity funds have
compounded these struggles, leaving regulators scrambling to enact capital
market reforms.
Despite the IPO debate, Revolut continues to expand
its business. The company recently secured a provisional banking license in the UK, aiming to become a fully-fledged lender in its home market. With over 10 million UK users, this move could bolster
its prospects of obtaining a US banking license, further aligning with its
global aspirations.
50 million customers in 38 markets over 9 years.
That’s a milestone worth celebrating
Thank you to every single customer across the world who’ve helped us hit this milestone. Let’s keep revolutionising the way the world does money, every day.
And we’re only just getting… pic.twitter.com/e2KXUrleiZ— Revolut (@RevolutApp) November 19, 2024
While marking the milestone of reaching 50 million customers in 9 years, Revolut recently unveiled its expansion plans. It includes AI-driven banking assistants, mortgages, business credit, and physical ATMs.
Revolut, one of Europe’s most significant fintech
firms, might skip a London IPO in favor of New York if the CEO’s the CEO’s
comments are anything to go by. Nikolay Storonsky has criticized the UK market for its
lack of competitive edge, citing stamp duty and limited liquidity as key
deterrents.
His comments highlight a growing trend of British tech
companies considering US markets for their public debuts. Storonsky highlighted
the challenges of listing in London in a recent report by CityAM. He mentioned that if he gets a better product from the UK, he will list it there, but he insists that the US market offers better conditions than those in the UK.
Revolut’s CEO Critiques London
He pointed to the UK’s 0.5% stamp duty on share
transactions, questioning how London could compete with the more attractive
trading environment in the US.
This isn’t the first time Revolut has raised concerns.
Earlier this year, the company reportedly joined other fintech players in
calling for the removal of stamp duty. Despite recent government efforts to
make London more appealing, Storonsky remarked that these changes might not be
enough to retain British tech stars.
Storonsky revealed that if he were founding Revolut
today, he’d start in the US, a stark contrast to the company’s London roots. He
named US banking giants like JP Morgan and Brazilian neobank Nubank as
Revolut’s key competitors.
The potential move to list in the US mirrors decisions
by other British firms, such as chipmaker Arm, which recently opted for a
Nasdaq IPO. According to Revolut CEO, the US’s deeper capital pools and broad investor interest make it an attractive option for companies aiming
for successful debuts.
London Struggles to Attract Listings
The London Stock Exchange has faced a dry spell this
year, with only 14 new listings as of now. Outflows from UK equity funds have
compounded these struggles, leaving regulators scrambling to enact capital
market reforms.
Despite the IPO debate, Revolut continues to expand
its business. The company recently secured a provisional banking license in the UK, aiming to become a fully-fledged lender in its home market. With over 10 million UK users, this move could bolster
its prospects of obtaining a US banking license, further aligning with its
global aspirations.
50 million customers in 38 markets over 9 years.
That’s a milestone worth celebrating
Thank you to every single customer across the world who’ve helped us hit this milestone. Let’s keep revolutionising the way the world does money, every day.
And we’re only just getting… pic.twitter.com/e2KXUrleiZ— Revolut (@RevolutApp) November 19, 2024
While marking the milestone of reaching 50 million customers in 9 years, Revolut recently unveiled its expansion plans. It includes AI-driven banking assistants, mortgages, business credit, and physical ATMs.
This post is originally published on FINANCEMAGNATES.
