The British digital bank Revolut is fleshing out its stock market plans – and at the same time dampening expectations of a short-term entry into the capital market.
• Revolut CEO wants to take the digital bank public
• No entry on the trading floor planned in the short term
• Possibly further secondary sales
Revolut has no immediate plans to go public at this time. An IPO is planned, but still “two years away,” CEO Nik Storonsky made clear, according to the Bloomberg news agency. He further emphasized in an interview: “We are a bank, and for a bank trust is crucial. Listed companies enjoy a higher level of trust compared to private companies.”
The current schedule is therefore aimed at 2028 at the earliest. Storonsky thus countered speculation that the neobank Revolut could go public as early as this year or remain permanently private.
Secondary sales as an interim solution
Until a possible IPO, Revolut will continue to sell existing shares. The fintech company examined additional so-called secondary share sales. These transactions would typically occur every one to two years at Revolut. The goal of these secondary sales, according to Storonsky, is to create liquidity for early investors and employees while extending its stay as a private company.
In addition, these measures have contributed to increasing the company’s valuation in the past. The most recent transaction in November valued London-based digital bank Revolut at $75 billion, up from $45 billion a year earlier, Bloomberg reported. This shows a significant appreciation within a short period of time.
Expansion and US banking license in focus
In parallel with capital market considerations, Revolut is pushing ahead with its international expansion. The company recently applied for a banking license in the USA. This would make it possible to directly access US Federal Reserve payment systems and offer products such as personal loans and credit cards.
Approval could take up to a year, with the company internally aiming for a goal of four months, according to founder and CEO Storonsky. He expressed his optimism: “It is of course much easier for us given the new government, especially since we have so many other banking licenses and now also have a banking license in Great Britain,” he is quoted as saying.
Classification: What does this mean for investors?
For private investors, the postponed schedule means one thing above all: patience. Short-term access to Revolut shares remains ruled out for the time being. Instead, the company is likely to continue to be valued through private financing rounds and share sales.
At the same time, the rising valuation shows that interest in the company remains high. A later IPO could therefore take place under more favorable conditions, but it is also important to assess the risks realistically. While the rising valuation in private transactions shows high expectations, it also means that a later IPO could already have priced in a lot of growth. Investors should be aware that IPOs of highly valued tech companies do not automatically bring short-term price gains. The crucial point will be under what conditions the company actually goes public.
If you still want to invest in the fintech sector, you can switch to companies that are already listed. These include digital payment service providers or neobanks with stock exchange listings. These offer at least a similar exposure to the structural growth of digital banking.
Thomas Zoller, editorial team at finanzen.net
