Revolut’s CEO Nikolay Storonsky has expressed a clear preference for listing in the US over the UK, citing liquidity and costs.
- Storonsky claims the UK market is less liquid compared to the US, hindering competitiveness.
- The US offers free trading, an attractive feature compared to the UK’s stamp duty costs.
- Storonsky believes the US provides a superior product for public listings, questioning the UK’s offerings.
- Revolut, valued at $45 billion, continues to weigh its IPO options, keeping future decisions open.
Revolut CEO Nikolay Storonsky has stirred conversations with his recent comments favoring a US listing over the UK. While discussing on the 20VC podcast, Storonsky highlighted significant concerns about the UK market’s liquidity compared to the US. He pointed out that trading in the US is free, unlike in the UK, where stamp duty adds to costs for investors. These factors make the UK a less attractive option for companies considering going public.
Storonsky’s comments come as Revolut has grown immensely, reaching a valuation of $45 billion and amassing over 50 million customers since its inception in 2015. The company’s potential IPO has become a focal point in financial discussions, considering the stagnant growth observed in the London markets. This stagnation is underscored by more companies choosing to delist than to debut, making Storonsky’s criticism particularly pertinent.
Despite his criticisms, Storonsky is not entirely dismissing a UK listing. He mentioned that if circumstances change and the UK’s market product becomes more appealing, Revolut might reconsider. However, as things stand, he remains firmly in favor of the US market for its superior liquidity and overall advantages.
The situation draws parallels to the tech firm Arm, which resisted UK government lobbying to list in London, opting instead for options elsewhere. Similarly, if Revolut moves toward a public offering, it is expected that the UK government will attempt to persuade the company to list locally. However, convincing top tech firms has proven challenging, irrespective of the efforts of successive prime ministers.
Revolut’s listing decision remains open but heavily leans towards the US due to current market advantages.
