Nikolay Storonsky, CEO of Revolut, has voiced strong criticism of London’s financial ecosystem, emphasizing that the U.S. offers a far more attractive environment for companies seeking initial public offerings (IPOs). His remarks suggest Revolut, one of Europe’s largest fintech firms, may bypass a London IPO in favor of New York.
Storonsky identified two key obstacles that make London less appealing: a 0.5% stamp duty on share transactions and limited market liquidity. These factors, he explained, hinder London’s ability to compete with the U.S., which boasts deeper capital markets and broader investor interest.
A Growing Trend of British Firms Looking West
Storonsky’s comments echo a broader trend of UK-based tech companies considering U.S. markets for public listings. British chipmaker Arm’s recent decision to debut on Nasdaq underscores this shift. Storonsky noted that if he were launching Revolut today, he would base the company in the U.S., highlighting American banking giants like JP Morgan as key competitors.
Despite efforts by UK regulators to make London more attractive for listings, Storonsky remains skeptical. He stressed that unless London offers competitive advantages, the allure of U.S. capital markets will continue to draw firms away.
London’s Struggles with Market Listings
The London Stock Exchange has faced significant challenges this year, with only 14 new listings and continued outflows from UK equity funds. Regulators have introduced capital market reforms to address these issues, but companies like Revolut remain unconvinced.
Storonsky also mentioned Revolut’s recent efforts to lobby for the removal of stamp duty, which has been a longstanding barrier to attracting IPOs. Despite these hurdles, Revolut is making strides in other areas, having recently secured a provisional UK banking license and unveiling plans to expand its services.
Revolut’s Expansion and Global Ambitions
While weighing its IPO options, Revolut continues to grow its business. With over 10 million UK users, the company is working toward becoming a full-fledged lender in its home market. At the same time, Revolut is eyeing a U.S. banking license, further aligning with its global growth strategy.
Celebrating its milestone of 50 million customers in just nine years, Revolut recently announced plans to introduce AI-driven banking assistants, mortgages, business credit services, and physical ATMs. These initiatives signal its intent to remain a leader in the fintech space, regardless of where it eventually chooses to go public.
