Revolut keeps ‘open mind’ on possible IPO venue as it hints at listing plans

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

The chair of Revolut has said the fintech would “keep an open mind” on a potential listing venue as its latest results hinted at plans for a much-anticipated IPO.

Martin Gilbert, a veteran fund manager who joined the firm’s board in 2020, added that Revolut was at least a year away from a stock market listing.

Revolut is understood to have recently hired bankers to help it sell around $500m of existing shares in a move that could value the firm at more than $40bn. This valuation would rival the market capitalisations of FTSE 100 lenders Lloyds and Barclays.

While Gilbert did not commit to the London Stock Exchange, his comments on Tuesday contrast with those of Revolut’s co-founder and chief executive Nik Storonsky, who said last year that he did not “see the point” of listing in London due to the UK’s regulatory environment.

Storonsky added that he would likely choose New York’s Nasdaq exchange in the event of an IPO. A point of frustration among Revolut’s top brass stems from the fintech’s more than three-year struggle with regulators to secure a UK banking licence.

However, Gilbert praised the Financial Conduct Authority’s (FCA) recent efforts to make it easier for companies to float in London.

“All the moves [regulators] are making are good – they’re allowing founder-led companies like Revolut to list here rather than just have no choice,” he told the Financial Times. “But again, let’s see how it all pans out. The proof will definitely be what happens in the future.”

The FCA has proposed making it easier for firms to use dual-class share structures, letting founders retain control despite selling down much of their stakes in an IPO.

Gilbert’s comments came alongside Revolut’s financial results for 2023, which revealed a record profit on the back of higher interest rates and a surge in users.

The firm’s annual report also hinted at its IPO ambitions. Chief financial officer Victor Stinga said Revolut had “set solid foundations” that, in the long term, would “bring our financial processes in line with the standards expected from publicly listed companies”.

The latest accounts were the first since 2020 that Revolut did not seek an extension to file beyond a statutory deadline in September. After warning last March that it was unable to verify much of Revolut’s revenue, auditor BDO gave an unqualified opinion of Revolut’s 2023 accounts.

Revolut said it had focused on improving its financial controls last year to allow BDO to “increase their understanding of the business”.

In March, Revolut’s UK CEO Francesca Carlesi became co-chair of a “Unicorn Council” formed by trade body Innovate Finance that is partly focused on making London a more attractive listing venue for fintech start-ups.