The Treasury has made advances towards key players in the UK fintech sector, such as Monzo and Revolut, on Tuesday, with the aim of encouraging these high-value unicorns to consider floating on the London Stock Exchange.
Emma Reynolds, the economic secretary to the Treasury, engaged with leaders from top fintech firms including Monzo, Revolut, Clearscore, and Oaknorth, as reported by City AM.
Joining the discussions were Dame Julia Hoggett, chief executive of the London Stock Exchange, and Financial Conduct Authority executive Simon Walls.
This engagement comes amidst reports first covered by Sky News that Monzo is preparing for an IPO, potentially valuing the company at £7bn.
2024 witnessed significant momentum within the fintech industry, leading to expectations of several prominent players making their public debuts soon.
Can Monzo and Revolut boost the LSE?
Whether giants like Monzo and Revolut will opt for a listing on the LSE remains a topic of interest, particularly as such moves could greatly benefit the platform.
In 2024 alone, data from LSEG indicated a trend of relocations and delistings from the main market in London, accentuated by 88 companies, including tech star Darktrace and Flutter Entertainment, changing markets, with just 18 new arrivals.
Emphasising its commitment to transparency, the Financial Conduct Authority promised at the previous week’s IPO Forum to “put the public back in IPO,” a statement reported by City AM.
However, the LSE still faces significant challenges in attracting these burgeoning fintech entities to its fold.
Nik Storonsky, the chief executive of Revolut, has dismissed a London listing as “not rational” in comparison to the US market with its higher liquidity and lower trading costs, stating this at the close of 2024.
Numerous industry leaders have cited geopolitical tensions as a factor complicating IPO prospects.
Speaking to City AM last month, Jaidev Janardana, chief executive at Zopa Bank, commented: “I feel that free opening of IPOs is far out and the current market conditions do not have that at all.”
While not currently prioritising a public offering, Janardana noted the firm’s readiness for flotation, emphasising that “business was ready, the markets need to be ready as well.”
