Europe’s IPO Hopefuls Are Now Thinking Twice About Going Abroad

After years of rapid growth, UK fintech startup SumUp is at a point where it’s considering an initial public offering. But that’s sparked a thorny question: where to list?

Management asked advisers to provide feedback on a possible venue, according to people familiar with the matter. They recommended the company would be better off in Europe, citing the low proportion of its revenue that comes from the US, the people said, contrary to trend of startups heading to New York.

For now, SumUp’s management are considering the advice, but the quandary hits at an issue that’s been plaguing Europe in ...