San Fran fintech snubs Nasdaq, chooses London Stock Exchange instead.

Boku, a San Francisco-based fintech, chose to float on the London Stock Exchange’s AIM market in 2017 due to the lighter regulation and less onerous reporting requirements compared to the US. The company provides infrastructure for non-card based payments and has a significant presence in markets such as Brazil, India, and East Asia. Boku’s decision to list in London goes against the belief that tech companies should float in New York for a bigger pay day. Since listing in London, Boku’s valuation has increased from £125m to £482.35m. The company’s CEO believes that being listed on AIM is more suitable for smaller companies, as they can get lost among larger firms on exchanges such as Nasdaq. Whereas many UK-based tech companies that have listed in the US have underperformed, Boku has been a success story. Several banks follow the company and its investor base includes major international backers. The CEO argues that Boku’s investor base would not be any different if the company had listed on Nasdaq. While Boku’s success shows that not all is lost for London’s junior market, the CEO warns that the trend of UK firms floating in the US will continue unless reforms are made to AIM.