Wise relisting plans have been approved by shareholders as the fintech shifts its primary listing from London to New York. The money transfer company successfully overcame investor rebellion led by co-founder Taavet Hinrikus. Previously known as TransferWise, Wise garnered overwhelming support for its dual-class share structure extension. This move grants founders including CEO Kristo Käärmann enhanced voting rights for another decade.
The Wise relisting proposal required approval from majority shareholders across both stock classes. Investors owning more than 90% of class A stock voted in favor of the New York move. Additionally, nearly 85% of class B shareholders supported the transition. Wise needed a “supermajority” of 75% approval from both voting groups to proceed with the changes. The successful vote provides strong mandate for the company’s strategic shift.
Wise co-founder Taavet Hinrikus actively campaigned against the Wise relisting plan last week. He urged shareholders to reject governance changes that he claimed betrayed company principles. Hinrikus argued that the London-headquartered company should maintain its British roots. Despite his opposition, shareholders chose to support management’s vision for expanded growth opportunities.
The dual-class structure gives enhanced voting rights to class B shareholders compared to class A stock owners. This arrangement allows founders to maintain control while raising capital from public markets. Wise relisting plans include extending this structure for ten years beyond its original 2026 expiration date. The extension ensures founder influence continues through 2036 despite public market pressures.
David Wells, chair of Wise, expressed satisfaction with shareholder approval outcomes. “We’re pleased that our owners have overwhelmingly approved the proposal, giving us a strong mandate to proceed,” he stated. The Wise relisting decision reflects investor confidence in management’s strategic direction. Shareholders appear willing to trust leadership despite governance structure concerns.
Wise originally listed in the UK in 2021 at a £9bn valuation. The company shocked London’s financial community by announcing primary listing relocation to the US. This move aims to attract more investors and improve share liquidity. The Wise relisting strategy mirrors other successful UK tech companies that have sought US market advantages.
Hinrikus criticized the bundled nature of voting proposals. He urged shareholders to reject the relisting unless separated from dual-class extension voting. The co-founder argued that Wise lacked transparency regarding share structure changes. However, company insiders countered that they had adequately communicated proposals to investors throughout the process.
Taavet Hinrikus retains 5.1% ownership through Skaala Investments despite his opposition stance. His former business partner Kristo Käärmann owns 18% of Wise shares. However, Käärmann controls just under 50% of company votes through significant class B holdings. Special provisions prevent the CEO from consolidating even more voting power.
The Wise relisting controversy involved major institutional investors including Andreessen Horowitz. The US venture capital firm represents a top ten Wise shareholder position. Last week, Andreessen Horowitz endorsed the relisting proposal with an “enthusiastic yes” vote. Their support helped legitimize management’s strategic shift among institutional investors.
Proxy advisers also weighed in on the Wise relisting debate with mixed signals. Glass Lewis initially backed the proposal without concerns about voting rights extension. However, the advisory group later expressed worries about dual-class structure continuation. They stated that unequal voting rights typically don’t serve common shareholders’ best interests. Despite these concerns, Glass Lewis ultimately supported Wise’s overall proposal.
The Wise relisting decision reflects broader trends among European tech companies. Many seek US listings to access deeper capital pools and higher valuations. London markets have struggled to retain major technology listings compared to New York exchanges. Wise’s move may encourage other UK fintech companies to consider similar transitions.
Market liquidity improvements represent a key driver behind Wise relisting strategy. US exchanges typically offer better trading volumes for technology stocks. Enhanced investor access could boost Wise’s market capitalization and trading activity. Additionally, American investors show greater familiarity with fintech business models compared to European counterparts.
The dual-class share extension addresses founder control concerns during public market transition. Many technology entrepreneurs worry about losing strategic direction to short-term investors. Enhanced voting rights help maintain long-term vision while accessing public capital markets. However, this approach sometimes creates tension with traditional shareholder governance principles.
Looking forward, Wise relisting execution will require careful coordination between London and New York markets. The company must navigate regulatory requirements in both jurisdictions. Additionally, investor communication becomes crucial during transition period. Successful implementation could serve as blueprint for other European fintech companies considering US listings.
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