Home Estate Planning Treasury plans talks with Revolut as fintech giant favours US listing

Treasury plans talks with Revolut as fintech giant favours US listing

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The UK government is reportedly seeking to highlight London’s attractiveness in planned talks with Revolut as Britain’s biggest fintech is said to favour the US for a potential blockbuster IPO.

The Treasury expects new City minister Tulip Siddiq to meet Revolut officials this autumn as part of a wider programme of one-to-one discussions with businesses, the Financial Times reported.

The outlet added that a source close to the Treasury said topics would likely include Revolut’s possible listing plans, as well as wider issues tied to financial services and the City of London.

The London-based banking app, currently selling up to $500m (£388m) worth of existing shares at a $45bn (£35bn) valuation, is still favouring a possible listing on the Nasdaq in New York rather than the London Stock Exchange, the FT reported, citing a source with direct knowledge of the matter.

Revolut declined to comment when approached by City A.M. The Treasury was approached for comment.

Revolut listing in London would come as a major boost to the capital’s beleagured bourse, which has struggled with an exodus of firms this year and high-profile snubs that have damaged its reputation as a trading venue for technology companies.

The previous Conservative government launched a charm offensive for Cambridge-based chipmaker Arm to list in London, but the firm opted to float on the Nasdaq last September – where it is currently valued at $136.7bn (£106.1bn).

Revolut’s co-founder and chief executive Nik Storonsky argued last year that he did not “see the point” of listing in London due to the UK’s regulatory environment.

However, chair Martin Gilbert said in July that the firm would “keep an open mind” on a potential listing venue and praised recent efforts to make it easier for companies to float in London.

The fintech exited regulatory limbo last month when it received a UK banking licence, subject to temporary restrictions, after more than three years of trying.

The licence allows Revolut to directly hold deposits and increase lending in its home market, where it boasts more than nine million customers. It is also expected to help Revolut’s chances of securing a licence in the US.

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