Ever seen business partners throw punches in public? That’s essentially what’s happening at Wise right now. The £12bn fintech giant’s plan to ditch London for a New York listing just hit a major snag – and it’s coming from inside the house.
Taavet Hinrikus, Wise’s co-founder and former CEO, just told shareholders to pump the brakes on the NYSE move. His beef? The proposal sneakily bundles in a 10-year extension for special voting rights that should expire next year. Talk about burying the lede.
The Drama Behind Wise’s NYSE Listing Plans
Hinrikus controls a 5% stake through his investment firm Skaala, and he’s not having it. His public letter called out the “lack of transparency” and warned that cramming two major decisions into one vote is “entirely inappropriate.”
The special voting rights in question? They belong to certain shareholders, including current CEO and co-founder Kristo Käärmann. These outsized powers were supposed to sunset in 12 months, but now they want a decade-long extension.
Hinrikus isn’t mincing his words: “Wise owners deserve governance structures that enhance value, not entrench power.”
Why This Co-Founder Feud Matters for Investors
This isn’t just corporate theatre. The clash highlights a bigger question about whether Wise’s New York listing plans are really about accessing deeper capital markets – or protecting executive control.
Käärmann insists shareholders are “overwhelmingly in favour” of the combined proposal. But Hinrikus claims other investors share his concerns, suggesting the vote could be razor-thin.
The magic number? A supermajority of 75% is needed to pass. That puts serious pressure on major shareholders like Edinburgh-based Baillie Gifford, which holds an 11.3% stake worth £1.2bn.
The Stakes for London vs New York Listings
Wise isn’t the first UK company eyeing greener pastures across the pond. The fintech argues that a US primary listing offers “better access to the world’s deepest and most liquid capital market.”
Translation: American investors might value the company higher and trade more frequently.
But critics worry about London losing another homegrown success story. The London Stock Exchange has already watched several high-profile departures, making Wise’s potential exit another blow to the UK’s financial reputation.
Both shareholder advisory firms Glass Lewis and ISS have backed Wise’s proposals, calling them “essential” for continued growth.
What Happens Next for Wise Shareholders
The vote is scheduled for next week, and it’s shaping up to be a nail-biter. Hinrikus wants the proposal split into separate votes – one for the NYSE listing, one for the voting rights extension.
His firm says it supports the US listing “in principle” but won’t stomach the governance changes bundled alongside it.
If the proposal fails, Wise stays in London and figures out Plan B. If it passes, expect more UK fintechs to follow suit – and more questions about what London needs to do to keep its tech stars home.
Key Takeaways
The Wise co-founder clash exposes deeper tensions about corporate governance and the UK’s competitiveness as a listing destination. Whether shareholders prioritise growth opportunities or governance concerns could set precedent for other London-listed tech companies eyeing American markets.
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FAQ
Q1: Why does Wise want to move from London to New York?
A: Wise believes a US primary listing will give it better access to American capital markets, which are deeper and more liquid than London’s. This could mean higher valuations and more active trading.
Q2: What are the special voting rights that Hinrikus opposes?
A: These are outsized voting powers held by certain shareholders, including CEO Kristo Käärmann. They were set to expire in 12 months but the proposal extends them for 10 years, which Hinrikus calls excessive.
Q3: How likely is the vote to pass?
A: It needs 75% approval, and while CEO Käärmann claims overwhelming support, co-founder Hinrikus says other shareholders share his concerns. Key investors like Baillie Gifford (11.3% stake) haven’t revealed their position.
Q4: What happens if the vote fails?
A: Wise stays London-listed and would need to develop alternative strategies for accessing US capital markets. The failure could also discourage other UK tech companies from pursuing similar moves.
Q5: Could this dispute affect Wise’s business operations?
A: The public co-founder feud could create uncertainty, but Wise’s core money transfer business should continue normally regardless of where the stock trades. The bigger risk is potential governance instability.
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Effective Date: 15th July 2025
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