Revolut CEO, Nikolay Storonsky, has voiced his doubts regarding the benefits of listing shares on the London Stock Exchange, suggesting the US is a more viable option.
- Storonsky emphasised the superior liquidity and lower trading costs in the US market in comparison to the UK.
- Revolut, valued at $45 billion, is viewed as a significant player within Europe’s tech landscape, intensifying interest in its IPO plans.
- The London Stock Exchange has seen a rise in delistings, which could impact its attractiveness for high-profile tech IPOs like Revolut.
- Despite his criticisms, Storonsky has not ruled out a UK listing entirely, indicating openness to future changes.
Nikolay Storonsky, CEO of London-based fintech company Revolut, has recently criticised the prospect of listing shares on the London Stock Exchange, asserting that the US market presents a more advantageous option. He pointed out that the US offers more liquidity and that trading there is free, in contrast to the UK, where such benefits are not as prevalent. Storonsky remarked, ‘I just don’t understand how the product which is being provided by the UK can compete with the product that is being provided by the US.’
Storonsky’s stance is particularly noteworthy given Revolut’s standing as Europe’s most valuable private tech company, boasting a valuation of $45 billion as of August. Since its founding in 2015 by Storonsky and Vlad Yatsenko, Revolut has rapidly gained a customer base surpassing 50 million globally. The company’s growth trajectory has made its initial public offering (IPO) highly anticipated, especially considering the recent stagnation in the London markets, where delistings have outpaced tech IPOs.
The economic landscape in London has notably shifted, leading to a reduction in the number of tech IPOs, thus amplifying the potential impact of Revolut opting for a US listing. Storonsky highlighted that listing in the UK is not economically rational due to its lower liquidity and higher costs, such as stamp duty, adding, ‘It is less liquid so it is much worse compared to the US. Plus it is more expensive because you pay stamp duty.’
Despite his critiques, Storonsky has left the door open for a future UK listing if the conditions become more favourable. He stated that he would reconsider if the UK could offer a superior market proposition compared to what the US currently provides. Storonsky clarified, ‘If I get a better product from the UK I will list in the UK, so far, if you just compare…one is far better than the other.’
The commentary on the potential Revolut listing adds to the broader dialogue about the London Stock Exchange’s appeal to major tech companies. As seen in the case of Arm, political efforts to allure significant entities back to London have been met with challenges, indicating that future attempts to attract Revolut might face similar hurdles from the UK government.
In summary, Revolut’s IPO decisions underscore the strategic considerations of tech firms evaluating the most advantageous markets for public listing.
