Nikolay Storonsky, the CEO of Revolut, has recently expressed his views on the challenges of listing on the London Stock Market. According to Storonsky, it is “not rational” for Revolut, Europe’s most valuable fintech start-up, to go public in London. He highlighted several key issues that make the UK market less attractive compared to the US.
One of the main concerns raised by Storonsky is the stamp duty tax on share transactions in the UK. This tax, which is not present in the US, makes trading more expensive and less liquid in the UK. Storonsky argued that the higher costs and lower liquidity in the UK market make it difficult for companies to compete with their US counterparts.
Storonsky also pointed out that the US market offers greater liquidity and free trading, which are significant advantages for companies looking to go public. He mentioned that if he were to start Revolut today, he would choose the US over the UK due to these benefits. This sentiment reflects a broader trend among tech companies, which are increasingly looking to the US for their initial public offerings (IPOs).
The CEO’s comments come at a time when the London Stock Exchange is facing challenges in attracting new listings. The UK market has seen a decline in the number of new listings, with several high-profile companies opting for the US market instead. This trend has raised concerns about the competitiveness of the London Stock Exchange and its ability to attract and retain leading tech companies.
Storonsky’s remarks have sparked a debate about the need for regulatory reforms in the UK to make the market more attractive for tech companies. Some industry leaders have called for the abolition of the stamp duty tax and other measures to enhance market liquidity and reduce costs for companies.
In conclusion, Storonsky’s views highlight the challenges faced by the London Stock Market in attracting tech companies. His comments underscore the need for regulatory changes to make the UK market more competitive and appealing for IPOs. As the debate continues, it remains to be seen whether the UK will implement the necessary reforms to retain its position as a leading financial hub.
