What's going on?

Wise announced plans on Thursday to make its debut on the London Stock Exchange, and the payment transfer company is confident it�s going places.

What does this mean?

The artist formerly known as TransferWise is eyeing a direct listing, which � unlike an initial public offering (IPO) � cuts out investment banks (and their exorbitant fees) and lets the company list without raising cash. That route makes more sense for Wise: the company sees $7 billion in transfers every month, it�s been profitable since 2017, and it�s doubled its revenue in the past two years. In other words, it doesn�t need cash from investors.

The direct listing means we won�t know Wise�s valuation until investors set it on the day. But the company was last valued at $5 billion in a private fundraising round last year, and one report suggests it might�ve climbed to $12 billion (tweet this).

Why should I care?

For markets: Pros and cons.
Wise�s stock market debut will be the first direct listing of a tech company in London � a big win not just for the UK, but retail investors too. Direct listings, after all, don�t give institutional investors first dibs on shares like IPOs do. There is a drawback, mind you: no investment bank around means there�s no one to keep Wise�s share price from getting too volatile in the early days.

The bigger picture: Get excited.
Wise isn�t the only company getting investors hot under the collar this week: OnlyFans � which provided the bare skin everyone needed to get through lockdown � said it�s looking to raise money from private investors at a $1 billion valuation for the first time. The startup handled more than $2 billion in sales last year, with $400 million in revenue and a profit to boot. The new funding round isn�t just about keeping its regulars happy, either: OnlyFans is looking to erect a more mainstream media platform and � presumably � fall asleep straight after.