The Wise share price jumped in its first trading day in London. The stock rose to a high of877p, valuing the company at more than 8 billion pounds. This means that the firm will likely qualify to be elevated to the FTSE 100 in the next reshuffle since it is bigger than Royal Mail and ITV.
What happened. Wise is a fintech company that was previously known as Transferwise. The company provides money transfer services and has other tools like a multi-currency account. The firm is also looking to expand to investment services since it has already acquired a license.
Wise went public on Wednesday this week through direct listing. This is a process where a company goes public without issuing new shares. It is a relatively faster and cheaper process of going online instead of the usual Initial Public Offering (IPO). Other popular companies that have used the model are Spotify and Palantir Technologies.
Wise share price jumped on its first day of trading, which valued the company at more than $11 billion. This makes it bigger than money transfer companies like Western Union and MoneyGram combined. This is despite the fact that it makes a smaller revenue and profit than these companies. As such, the initial pop is mostly because investors are interested in fast-growing technology and fintech companies that are disrupting the industry. So, what next for the WISE stock?
Conducting a technical analysis on Wise share price is relatively difficult since the stock has been public for a single day. Still, the performance on the first day shows that there is substantial demand for highly disruptive companies in the fintech industry.
For one, in the past few years, we have seen companies like PayPal and Square grow to become giant firms. Therefore, because of Wise strong and ast growing market share, I suspect that the stock will be substantially higher in the next few years.
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