LON:WISE | Wise (Transferwise) - OwnWise

9th Aug '21 by MdHen

2 comments 695 reads

Evening all,

This is my first post so please go easy.

After missing out on the initial share offer that they put out to their customers I recevied an email today to be part of their "OwnWise" scheme where (after a quick look) it appears once you show/ prove you've bought shares they will reward you with an extra 5% of bonus shares 12 months later - assuming you've held them.

Given they're just listed ( Wise (LON:WISE) ) there seems to be limited data in terms of stockranks etc. Does anyone have any views on this offer or the company as an investment opportunity? I use Wise to send payments to Eurozone on fairly regular basis and find the site really simple, easy to navigate and importantly much cheaper than traditional banks.

Does anyone have any opinion of the offer or Wise as a business? As a newbie I am unsure where to get the relevant research materials

Many thanks

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donQ

9th Aug '21

Here is the offer rules:

"Purchase shares through your broker by 10 September, if you haven’t already. Hold the shares for at least 12 months. Upload proof of your purchase below by 17 September. Then we will give you bonus shares up to the value of 5% of your original investment. The maximum value of the bonus is £100." - so it's like a special dividend, but limited amount.

The company has a great service for sure. The share is extremely overpriced, but it can still go higher in these days...

abtan

Wise (LON:WISE)

Hi MdHen

Thanks for the post.

I'm a big fan of Wise (LON:WISE) , both for the service it offers, which I end up using several times a year, and the share price.

Some positives, mostly obtained from the IPO document:

Gross Margins have been consistently 62% for several years,
Admin costs have been decreasing for several years.
Marketing spend is c 5%, a ridiculously low amount for such a large, fast growing business. Most new business is by word of mouth.
The number of Business Accounts continues to rise rapidly. Q1 showed 57% YOY growth.
(NB: Business Accounts on average generate c £260 of revenue per year vs £60 for Private Accounts.)

There's lots to like here, and once the proceeds of the Augean (LON:AUG) sale come through I imagine that I will redeploy here.

What do you or others think? It would certainly be interesting to hear more views, preferably negative ones.

Cheers for starting the post.

Wise (Transferwise) - OwnWise

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MdHen

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