British financial technology firm Wise entered the London stock market on Wednesday, valued at £8.0 billion (€9.3bn) in a key post-Brexit test for the sector.

The global money transfer specialist launched at £8 per share under a so-called direct listing, which does not seek to raise capital but enables public trading. The operation is cheaper and more transparent than a traditional initial public offering that involves issuing of new shares. The valuation increased in initial trading with the group’s share price rising 1.6 per cent to 812.52 pence.

“The Wise listing will be another test for London as a fintech hub, as the UK grapples with its post-Brexit status in an era when it has struggled to attract fast-growing companies looking to launch an IPO,” said Hargreaves Lansdown analyst Susannah Streeter.

Wise, founded in 2011 as TransferWise, had previously been valued at $5.0 billion (€4.2bn). The firm has six million customers and 2,400 employees worldwide.

Speaking last month, Wise chief executive Kristo Kaarmann was moving money around the world “faster, cheaper, easier and completely transparent”. He added that the direct listing allowed for “a cheaper and more transparent way to broaden” ownership of the group.

The group has won customers during pandemic lockdowns as people sought alternative ways of transferring cash

Unlike many fintech companies that struggle to generate a profit, Wise has been profitable since 2017. The group has won customers during pandemic lockdowns as people sought alternative ways of transferring cash.