Wise Group Share Price Forecast July 2021 – Time to Buy WISE?
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British Fintech Company Wise (LSE: WISE), is in the news lately because of its decision to go public on the London Stock Exchange. According to reports, the company will use a rare listing method that was pioneered by Spotify. As newly listed shares, WISE has attracted a lot of interest from investors.
Wise Group – Technical Analysis
As revealed by the financial statement of Wise Group, the company has been profitable for years, breaking even for the first time in 2017. Revenues for Wise Group increased by 39% to £421 million. Profits also increased to £30.9 million.
Founders Käärmann and Hinrikus are the biggest shareholders of the company, who own 18.8% and 10.9% respectively. The company’s top external investor with a 10.2% stake is Peter Thiel’s Valar Ventures. WISE shares will start trading at 10:00 GMT with $1 = 0.7248 pounds.
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Recent Developments
Wise Group, which is one of Britain’s most popular fintech companies, launched their first-ever direct listing on the London Stock Exchange last month. As a direct listing, WISE shares will be listed on the stock market without the need for a public offering of shares. The deal has also been seen as a crucial test for Britain’s Fintech sector, on the back of the Brexit deal.
As per reports, the company’s class A shares are indicated to open at 750p in an auction. This would give it a market cap of over $9.66 billion as indicated by Refinitiv prices. Ahead of its trading debut at the LSE, the auction will determine the WISE share price. The bid-ask spread was from 500 p to 1000p.
Should You Buy WISE Shares?
Investors have worries regarding governance over the ownership structure of WISE. Food delivery firm Deliveroo’s IPO which followed a similar gig economy model was unsuccessful with shares plunging more than 30%. However, WISE has said that it has structured its dual-class shares in a way that no shareholders with class B shares, can hold more than half of the voting rights.
It is expected that the WISE share prices will be determined within three hours of the opening auction. WISE has also introduced a customer shareholder programme. As part of this program, participants will receive bonus shares representing 5% of the value of the total shares they buy and hold for at least a year. This is applicable up to a cap of £100.
Since 2019, the company’s financials have been healthy, with a compound annual growth rate of 54%. With a worldwide customer base of 10 million, investors have a lot of reasons to pick up WISE shares. However, past performances aren’t necessarily an indication of future results.
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