Fintech juggernaut Revolut is weighing up a dual listing in New York and London for its share sale, in a move that would provide the City with a major boost after a sluggish IPO period.
Revolut considering London as a destination for a listing worth at least $75bn (£55.96bn) would appear to demonstrate a change of attitude in founder Nik Storonsky, after he previously downplayed his appetite towards floating in the capital.
A senior City source told The Times that the idea of a dual listing for Revolut was being “widely discussed” in financial circles.
If a deal were to take place, it would make history as the first time a company simultaneously listed in New York and entered the FTSE 100 index.
Revolut’s valuation of approximately £55bn would make it one of the 15 most valuable companies in London.
The London market has experienced a severe IPO slump so far this year, due to wider economic issues and heightened market volatility.
Making the UK an attractive destination
Storonsky made clear that he expects Revolut to conduct an IPO to allow its major shareholders to exit, but had said it would not be “rational” to list in London, citing its 0.5 per cent stamp duty on share trading.
However, a Revolut source acknowledged that Storonsky had also said: “If I get a better product in the UK, I will list in the UK.”
This request has been partially answered, with changes introduced at the start of this month allowing companies the size of Revolut to be fast-tracked onto the FTSE 100 in just five days.
This would allow important index-tracking funds to buy into IPOs more easily.
At the opening of Revolut’s new headquarters in Canary Wharf last week, Storonsky made a commitment to Britain, calling it “our home country”.
Meanwhile, at the same event, chancellor Rachel Reeves said the government was making “Britain the best place to do business”.
During President Trump’s state visit earlier this month, a “transatlantic task force” was also set up to encourage market co-operation that is expected to look into ways to facilitate dual listings.
No hurry to list
Revolut, which would not comment to the Times, however does not appear to be in any rush to conduct an IPO, as it is focused on conducting a secondary share sales that is said to value the business at $75bn.
The company may also need to complete the launch of its UK bank, which is still in the testing phase after receiving authorisation from the Bank of England last year.
Storonsky called the rolling out of the fintech’s UK bank as his number one priority, as he aims for 100m customers globally.
But, if Revolut did take the New York and London path, it would have to undertake a full dual listing in both, rather than a secondary listing in the latter.
Under City rules companies incorporated in the UK can only hold full, not secondary listings in the capital.
