Leaving the London market is not always a wise step

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Wise believes in “money without limits”. But British Fintech – a specialist in international transfers – believes that investors of shares are more restricted.

Wise plans to transfer it Initial menu To exchange the United States, he said on Thursday. It hopes that the largest and most liquid capital market will enhance its evaluation, and the largest exposure will make it easy to attract American customers.

For the third largest technology collection listed in London, with a 11.5 billion pounds marketing market, the switch in this way will be ruled Discussion About whether the UK market is trapped in a downward cycle. It is also likely to be of a little use of wise.

There is little evidence that moving to the United States helps most companies in the long run. Institutions there already have easy access to foreign stocks, which are The largest group of shareholders In most FTSE 100 companies. More money collects around the indicators, but it is wise to initially to be eligible for this. The United States also has a larger range of retailers, but this is not usually the most reliable group for long -term sustainable investment.

Moreover, most of the UK’s most valuable companies do not have a problem in reaching international customers – the vast majority of FTSE 100 revenues come from abroad. The main Wise goals are American banks, which must be sophisticated enough to deal with the resource that occurs abroad.

Studies by UBS I found that the insertion site has a little effect on the evaluation. Certainly, FTSE 100 trades at a price to redirect the profit rate of 12.9 compared to 22.4 from the S&P 500, according to the S&P Capital IQ data. But this is because the United States Index is dominated by the fastest growing companies.

When ubs Compare peers, British companies were often more expensive, not less. You did not find separate analyzes by FT a great benefit either for European companies that convert the list into the United States, or to Special European groups That follows the initial general offers there. This was even before calculating the potential impact of the modern market and political fluctuations, which encourages many investors Re -evaluating their exposure in the United States.

Fans should pay attention to the city. The London problem may be more than the data based on the data, but the image problem is still a problem. It has been particularly difficult to get rid of its bad reputation between this type of investment from investment capital and investors who dominate the financing of the most attractive technology groups – including wisdom. Finding a way to attract them – or developing a stronger local project industry – is a serious challenge.

Meanwhile, Wise won a short -term increase: the stock rose more than 10 percent on Thursday before returning. There are valid reasons for continuing to rise – work is Progress Towards its goals. But the company itself does not need to cross any limits to get there.

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