Surge in value

Scottish Mortgage stake rockets in fintech’s IPO

Kristo-Kaarmann-and-Taavet-Hinrikus

Co-founders: Kristo Kaarmann and Taavet Hinrikus

Baillie Gifford’s Scottish Mortgage Trust has more than doubled the value of its holdings in Wise, one of Britain’s biggest fintech firms after its shares soared on its market debut.

Wise’s opening market capitalisation was more than double the £3.6bn valuation placed on the business in a fundraising 12 months ago. 

Its flotation on Wednesday saw its market cap soar to £8bn, providing a boost to Scottish Mortgage, the £18.7bn investment trust, which had a 0.9% position at the end of May.

It was another triumph for Baillie Gifford manager James Anderson, who heads the Scottish Mortgage portfolio and supported the decision by Wise, formerly known as TransferWise, to opt for a controversial dual share class structure.

This gives the founders and early investors more control during the early stages of being a public company.

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