IPO
Setback for London as UK fintech specialist Zepz eyes US IPO
February 2, 2022
Money transfer specialist Zepz is planning to go public at a $6 billion valuation in the US instead of listing in its native UK, Bloomberg reported.
The move will be a disappointment for UK policymakers who have been trying to entice more UK-based tech startups to list in London.
UK Prime Minister Boris Johnson was to reportedly meet with executives from companies such as Checkout.com, OakNorth and PensionBee on Monday. However, he pulled out of the meeting in order to give a statement on his government's recent lockdown parties scandal.
The planned meeting followed a decision by the UK's Financial Conduct Authority in December to allow companies with dual-class share structures—which can give tech startup founders special voting privileges—to list on the London Stock Exchange's premium listing segment. It also reduced the minimum number of shares that issuers must float to 10% from 25%.
The change follows recommendations from both the UK Listing Review and the Kalifa Review of UK Fintech—two government-commissioned reports published last year that looked at ways to re-invigorate the country's tech sector and listings regime post-Brexit.
Europe as a whole saw an unprecedented wave of VC-backed listings last year, with around 186 public listings raising €117.3 billion, according to PitchBook's Annual 2021 European Venture Report. Unfortunately, this has been blighted by poor performance. Two of the biggest disappointments of 2021 were food delivery company Deliveroo and money transfer giant Wise, both UK-listed companies that have traded well below their listing price.
Zepz, formerly known as WorldRemit, raised $292 billion at a $5 billion valuation last August. The company, founded in 2010, provides cross-border payments across two brands: WorldRemit and Sendwave. Its investors include Farallon Capital, BlackRock, Leapfrog and Accel.
Featured image by Rawf8/Getty Images
The move will be a disappointment for UK policymakers who have been trying to entice more UK-based tech startups to list in London.
UK Prime Minister Boris Johnson was to reportedly meet with executives from companies such as Checkout.com, OakNorth and PensionBee on Monday. However, he pulled out of the meeting in order to give a statement on his government's recent lockdown parties scandal.
The planned meeting followed a decision by the UK's Financial Conduct Authority in December to allow companies with dual-class share structures—which can give tech startup founders special voting privileges—to list on the London Stock Exchange's premium listing segment. It also reduced the minimum number of shares that issuers must float to 10% from 25%.
The change follows recommendations from both the UK Listing Review and the Kalifa Review of UK Fintech—two government-commissioned reports published last year that looked at ways to re-invigorate the country's tech sector and listings regime post-Brexit.
Europe as a whole saw an unprecedented wave of VC-backed listings last year, with around 186 public listings raising €117.3 billion, according to PitchBook's Annual 2021 European Venture Report. Unfortunately, this has been blighted by poor performance. Two of the biggest disappointments of 2021 were food delivery company Deliveroo and money transfer giant Wise, both UK-listed companies that have traded well below their listing price.
Zepz, formerly known as WorldRemit, raised $292 billion at a $5 billion valuation last August. The company, founded in 2010, provides cross-border payments across two brands: WorldRemit and Sendwave. Its investors include Farallon Capital, BlackRock, Leapfrog and Accel.
Featured image by Rawf8/Getty Images
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