Revolut considers listing on the London Stock Exchange after becoming Britain’s most valuable technology company ever
Revolut is considering listing on the London Stock Exchange after becoming Britain’s most valuable technology company ever, the MoS can reveal.
The financial ‘super app’ last week hit a blockbuster valuation of $33 billion (£24 billion), bigger than NatWest, following an $800 million fundraising effort from private equity giants Softbank and Tiger Global. The $33 billion price tag is six times bigger than the latest funding round early last year, when founder Nikolay Storonsky, 36, became one of Britain’s youngest billionaires.
A listing in the City would be a huge boost to Chancellor Rishi Sunak’s plans to make London the home of high-growth companies.
Sky-high success: A listing in the city would be a huge boost to Chancellor Rishi Sunak’s plans to make London the location for high-growth companies
After a week of speculation about the company’s plans, Revolut chairman Martin Gilbert told the MoS exclusively: “If we ever made a list, we’d love to make a list in London. To be fair to the London Stock Exchange and the Treasury, they are making it easier for us to list in London instead of having to go to Nasdaq in the future. The Treasury and the Stock Exchange are trying to make London the most attractive place to list.’ However, he ruled out listing this year, saying there were “no immediate plans.”
The government published two reviews earlier this year, led by Lord Jonathan Hill and former Worldpay boss Ron Kalifa, to lure tech entrepreneurs to Britain. They argued that companies should be allowed to hold “dual class shares,” which would give founders more voting rights than common stockholders and help them fend off takeovers.
Gilbert, who founded Aberdeen Asset Management in 1983, said, “The dual class stocks would be important. Founders are always afraid of losing control.’
Rival payment app Wise listed in London last month worth £9bn and holding dual class shares, although under current rules it was unable to list on the ‘premium’ section of the Stock Exchange, where shares are included in indexes such as the FTSE100.
According to Revolut’s pitch documents seen by this paper, the new funds will help expand supply in the US and increase access to India and other markets. It said the mobile app is now the world’s fourth most valuable fintech.
Revolut started out as a cheap foreign exchange travel card. It now has 16 million customers and offers other financial services including crypto currency trading.
But analysts have wondered how Revolut achieved a valuation of £24 billion, when it had an annual loss of £168 million last year. Gilbert said Revolut made profits in the first few months of the year.