Revolut is exploring a dual listing in the US and UK which has been hailed as a “positive sign” for the London capital markets.
Nik Storonsky, founder of global FinTech founded and headquartered in London, had previously seemed set to snub its home city when it eventually goes public in a potential £100 billion IPO.
However he told French newspaper Les Echos that it is actively considering a dual listing, with the primary listing being in the US.
Admitting again that he “prefers” the US, he explained: “It’s a larger market. It includes institutional investors, hedge funds, fund managers and a considerable number of individual investors.
“So we have the choice between selling in a small market with few buyers, or in a gigantic market with a huge number of buyers who will compete fiercely for our shares. Therefore, yes, we prefer the United States.”
In 2024, he said it was “not rational” to list in London, saying: “If you look at trading in the UK, you always pay a stamp duty tax which is 0.5%. I just don’t understand how the product which is being provided by the UK can compete with the product provided by the US.
“If I get a better product from the UK, I’ll list in the UK; but so far if you just compare these products, one is far ahead than the other.”
Paul Arathoon, partner in the corporate team of international law firm Charles Russell Speechlys, said the latest comments were “a positive sign for the City looking ahead”.
“Given Nik Storonksy’s prior comments concerning stamp duty on London traded shares, together with Revolut’s well-publicised issues with the FCA in obtaining its banking licence, the fact that Revolut is considering London as a dual list venue speaks to the strength and liquidity of the London Stock Exchange,” he said.
“This could ultimately kickstart a new trend for high growth tech-focused financial services businesses who might previously have looked only to the US for their listing.
“Dual listings remain relatively rare and are generally not appropriate for smaller businesses, and so the bigger story here really is choice of venue. This is a genuinely powerful vote of confidence in London’s capital markets.”
Another London FinTech, Wise, plans to switch its primary listing to the US to secure access to “the world’s deepest and most liquid capital market”.
Meanwhile Revolut has received a $3 million ransom demand, according to reports, after hackers posing as Italian government officials stole data of 680 customers thought to be cryptocurrency holders.
A Revolut spokesperson said the bank “has not received any direct contact or demand from the individuals or group making these claims”.
They added: “Revolut recently identified a sophisticated external impersonation scam where an unauthorised third party utilised a legitimate government agency domain email to submit fraudulent requests for information.
“Upon detection, we immediately blocked the address and alerted the relevant government agency as well as enforcement agencies, data protection, and financial regulators. Revolut systems and customer funds are unaffected.
“We have contacted the limited number of impacted individuals directly to inform them and provide support.”