Monzo is considering an initial public offering (IPO), but its management are split over whether it should happen in London or New York.
The digital-first challenger bank is preparing to list on the stock market in the the near future, the Financial Times reported today.
The firm’s CEO TS Anil favour listing in the US, while its board would prefer the UK, according to “people familiar” with the plans.
No timeframe has yet been agreed for the IPO, they said, though one source suggested Monzo could list in 2026.
The internal debate over whether the firm should list in the US or UK comes as the London Stock Market has faced intense criticism in recent years for failing to attract and retain businesses.
Last year 88 companies delisted or transferred their primary listing from the London Stock Exchange (LSE).
They included takeaway service Just Eat and gambling group Paddy Power’s owner Flutter.
Other major companies to turn sour on the LSE include travel group Tui, and equipment rental firm Ashtead
However, there are signs the London exchange could be due to a recovery, following changes by the Financial Conduct Authority last year loosening capital raising and other regulations.
In December, French television channel Canal+ became the largest London IPO since Haleon was spun out of GSK in 2022, reaching a valuation of around £2.5bn.
As of August last year, Monzo had 10 million customers in the UK, but its presence in the US is far smaller, though it has plans to expand in the market.
What would an IPO mean for Monzo customers?
When banks and fintechs publicly list, this is usually a good sign for their customers.
This is because listing imposes increased transparency on companies, forcing them to report quarterly and disclose more information about their operations.
It can also help them attract funding, which may allow them to strengthen their offering.
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
You can contact Robin at robin@goodmoneyguide.com
