Wise shareholders approve move to US for stock listing

The UK fintech company Wise receives shareholder approval for a US listing.

Shareholders of Wise vote for US stock market listing

Wise, the online payments firm based in the UK, has received shareholder approval to move its main stock market listing to the United States. This decision was made during an extraordinary meeting where investors voted in favor of a dual listing to attract new investors and increase market value. The vote was controversial, as it included a proposal to extend the company’s dual-class share structure, which grants enhanced voting rights to certain shareholders, primarily co-founder Kristo Käärmann. Under the new structure, Käärmann's economic interest in Wise skyrockets from 18% to 55%, though his voting rights remain capped at 50%. The change aims to boost Wise's presence in the US market, which the company believes offers significant growth potential. However, taavet Hinrikus, another co-founder, expressed concerns about bundling these key issues into one vote, arguing that it undermines shareholder governance. Despite the criticism, around 91% of class A shareholders supported the decision to move the listing and maintain the dual-class structure, while 84.5% of class B shareholders were in favor as well.

The vote to shift Wise's listing to the US highlights a significant trend in fintech companies seeking to tap into larger, more liquid markets. The dual-class structure, while allowing founders to retain control, raises questions about corporate governance and shareholder rights. Critics worry that such arrangements entrench power among founders at the expense of broader shareholder interests. In the eyes of some, this move could also signal a shift in how fintech companies are navigating investor engagement and market expectations. As Wise prepares for this transition, the balance of power and governance will be crucial going forward, particularly as they seek to reassure investors in a competitive landscape.

Highlights

The perspective on governance within major fintech firms may shift as Wise's transition unfolds.