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Private equity-backed software group Visma has selected London over Amsterdam for the planned initial public offering for the software company, which costs 1.9 billion euros next year, winning a rare victory in the UK’s identified stock market.
British buying company HG owns Visma. Visma offers accounting and payroll software to small to medium-sized businesses.
Since then, the UK-based private equity company has repeatedly reinvested in Visma through new funds and has acquired some of its shares through sales to outside supporters.
HG currently owns around 70% of Visma, which has co-investments, with the rest owned by minority shareholders, including Singapore’s GIC and US Private Equity Group TPG.
Visma had previously considered pursuing an IPO in 2023, but instead opted to sell private stocks to investors, including Jane Street and Altaroc, in a deal that valued the company at 19 billion euros.
However, the business, which grew with the 350 Volt-on acquisition and reported last year that its revenue of 185 million euros in pre-tax profits, is now well-versed in debate as it could be too big to be completely private. They added that HG is planning to hold long-term stakes in Visma.
The decision to move forward with the listing in London early next year is provisional and conditional on implementing the promised reforms by the government and stock exchanges that are necessary to outweigh the complications caused by Brexit, people said.
London’s stock exchanges are lacking in new lists and a steady stream of exits from large corporations is being hampered by moving the main list to New York and accepting offers to buy.
Last year, 88 companies listed or transferred major listings from major London markets. So far, London Stock Exchange data shows that three major markets this year have only three IPOs in the country’s major markets, totaling market capitalization at listings under £100 million.
Those familiar with deliberations won the Visma IPO because London has more investors than its focus solely on deep capital markets and UK stocks.
However, they added that implementing planned reforms, such as allowing euro-price companies to be included in the FTSE index, is essential.
The bank will be invited to pitch for listings this week, people said.
Visma and HG declined to comment.
