Wise went public through direct listing at £8 a share on July 7, 2021, giving the company a market value of £8B ($11B).
On June 17, 2021 the fintech company Wise (former TransferWise) confirmed plans for London IPO. The listing is expected to be finalized by 5 July.
The British neobank has appointed Goldman Sachs and Morgan Stanley as joint global co-ordinators for its long-awaited initial public offering (IPO).
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- Detailed instructions how to participate in an IPO like TransferWise (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank (Goldman Sachs and Morgan Stanley in Wise's case) to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company with underwriters' help sets an initial price and date for the stock to begin trading on a stock exchange.
Company Profile and Financial Indicators before TransferWise IPO
Originally launched in 2011 as a money transfer service for people, the company has expanded to build a cross-border payments network helping to make international banking cheaper, faster and more pleasant for its 10 million personal and business customers.
Today the company processes £4.5 billion in cross-border transactions every month, claiming to help customers save approximately £1 billion a year in reduced fees compared to using legacy banks. The company has since gone on to raise nearly $400 million and counts the likes of IVP, Richard Branson, Andreessen Horowitz, and Baillie Gifford as investors.
The number of TransferWise customers has exceeded 10M, while the total amount of transactions per month is over $6B. The customer satisfaction level is high, as, according to the TransferWise official website, people save over $1.50B annually on hidden fees.
In July 2020, the company was already valued at $5B. Some insider sources report that, after announcing the IPO, TransferWise may beat these results even before the new funds get involved.
How to Buy TransferWise Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in TransferWise IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy TransferWise shares when the company goes public via a commission-free trading app like eToro.
🚨 Detailed Instructions How to Participate in an IPO like TransferWise before public trading:
Below we share the instruction how to participate in the approaching TransferWise IPO using Freedom Finance (Freedom24 platform).
* Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Submit a request to participate in the IPO — when applications are open select TransferWise and click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start — a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 72%, past IPOs data.
When is the TransferWise IPO date?
July 7, 2021.
What is TransferWise IPO price range?
£8 per share.
How to Invest in TransferWise after the IPO date (opening price)?
After the IPO you can buy TransferWise stocks via Freedom24 on the first trading day. Or if you're from US use a commission-free trading app like eToro
In what currency TransferWise IPO and post-IPO shares will be traded?
The TransferWise IPO and stock trading currency will be GBP.
If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Wise itself. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. Wise never hides fees in the exchange rate.
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What is the TransferWise (stock symbol)
Sources used: Sky News, TechCrunch
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