#PayTech / TransferWise preps for 2021 IPO

London-based online money transfer service, TransferWise, has asked investment banks to pitch in the new year for roles on an impending initial public offering (IPO).

London is said to be the preferred listing destination of its founders, Taavet Hinrikus and Kristo Kaarmann… Goldman Sachs is understood to be well-placed for a leading role on the deal.

A special purpose acquisition company (Spac) is also likely to be an option for TransferWise given its popularity by tech companies this year… TransferWise was valued at $5 billion (£3.7bn) in a secondary fundraising just five months ago. An IPO is unlikely to take place until well into 2021.

UK Prime Minister, Boris Johnson, hosted a call on 18 December, with the bosses of some of the UK’s “most prized tech companies”. This included Deliveroo, Oxford Nanopore and Revolut… Kaarmann, TransferWise’s chief executive, was among those in attendance.

A flotation would make both of the founders “paper billionaires” if estimates of the size of their shareholdings in TransferWise are correct. They are thought to own roughly 40% between them.