Wise Consults Shareholders on FTSE 100 Listing Plans

The international money transfer platform Wise is currently engaging in discussions with its shareholders regarding the potential for the company to secure a spot in the FTSE 100 index. This move would require Wise to amend various aspects of its articles of association and gain necessary approval from the Financial Conduct Authority.

With a market valuation standing at £9.7 billion, Wise’s inclusion in the FTSE 100 could be realised if it satisfies the criteria set forth by FTSE Russell. However, the path to inclusion is not without challenges, notably the company’s dual-share structure, which allocates co-founder and CEO Kristo Kaarmann significantly more votes per share compared to newer investors.

The current arrangements dictate that Kaarmann possesses nine times the voting power of other shareholders. This situation is projected to change in July 2026, when all B shares will convert to ordinary A shares; however, Kaarmann has hinted at the possibility of extending the existing arrangements to maintain his substantial influence over the company.

Kaarmann holds an 18.1 per cent economic interest in Wise while commanding an impressive 40.75 per cent of the voting rights. His track record has not been without controversy, including being designated a deliberate tax defaulter by HM Revenue and Customs in 2021.

Despite these hurdles, the company appears optimistic about its financial performance. During a recent capital markets presentation, Wise disclosed expectations for an underlying income growth of 15 per cent to 20 per cent for the fiscal year ending in March 2026.

As Wise navigates through these complexities, the potential elevation to the FTSE 100 remains a vital topic for shareholders eager to see their investment solidified within the realm of blue-chip companies.