Revolut’s CEO, Nikolay Storonsky, openly questions the rationale behind listing in the UK compared to the US.
- Storonsky highlights the illiquid nature of the UK market and absence of trading fees in the US as major factors.
- Revolut is Europe’s most valuable private company, eyeing a potential US public market entry valued at $45 billion.
- London’s stock market faces challenges with more delistings than tech IPOs, causing concern for potential listings.
- Storonsky remains open to a UK listing if future conditions improve and offers competitive benefits.
Nikolay Storonsky, CEO of Revolut, has raised questions regarding the benefits of listing the company’s shares in the UK compared to the US. According to Storonsky, the US public markets present clear advantages, particularly due to the higher liquidity and absence of trading fees. Storonsky expressed his views during an interview on the 20VC podcast, stating that he finds the UK less competitive in this regard.
Revolut, co-founded by Storonsky and Vlad Yatsenko in 2015, has achieved remarkable growth, becoming Europe’s most valuable private tech company. With a current valuation of $45 billion, the company has amassed over 50 million customers globally. The prospect of Revolut’s IPO has captured significant attention, as it promises to be the most substantial public offering by a British tech firm since Arm.
The stagnation and challenges within the London Stock Exchange, highlighted by more delistings than tech IPOs this year, have fueled concerns over potential listings. Storonsky emphasised the financial drawbacks of listing in the UK, including the illiquidity of the market and the additional costs incurred from stamp duty.
Despite his concerns, Storonsky has not completely ruled out a UK listing. He indicated that if the conditions in the UK market were to become more favourable, offering a product that could compete with the US, he would consider it. Storonsky remarked, “If I get a better product from the UK, I will list in the UK.”
As Revolut approaches the possibility of a public float, similar to the situation faced by Arm, the company is likely to be a target for lobbying by the UK government. The pressure that previously failed to convince Arm to list in London might similarly challenge Keir Starmer and the current Treasury when engaging with Revolut.
Revolut’s potential public listing ignites debate over the advantages of the US market versus the UK’s current climate.
