In a big victory for the UK’s stock market, Norwegian private equity-backed software giant Visma has picked London over Amsterdam as the location for its upcoming initial public offering (IPO), slated for early next year. The move is a boost for the city’s stock market, which has seen a lack of new listings and several high-profile departures. The IPO is expected to value the company at approximately £16 billion (€19bn).
The company, which provides accounting and payroll software for small to medium-sized businesses, has been owned by the British buyout firm Hg since 2006, when it was taken private at a valuation of around £380 million. Since then, Hg – which has registered headquarters in SE1, London -has repeatedly reinvested in Oslo-headquartered Visma while also cashing out some of its holdings through sales to external backers.
Hg, along with its co-investors, currently holds about 70 per cent of Visma. The remaining stake is owned by minority shareholders, including Singapore’s GIC and the US private equity group TPG.
Visma had previously considered an IPO in 2023 but instead opted for a private share sale that valued the company at £16 billion (€19bn). However, sources familiar with the discussions suggest the business, which has grown through 350 bolt-on acquisitions, may now be too large to remain fully private. Hg reportedly plans to maintain a long-term stake in the company after the listing.
In 2024, Visma reported £2.4 billion (€2.8bn) in revenues and a pre-tax profit of £157 million (€185mn), with a free cash flow of £750 million (€885mn).
The decision to list in London is provisional and hinges on the successful implementation of promised reforms by the government and the London Stock Exchange to counter post-Brexit complications. These reforms are seen as crucial for attracting and retaining major listings.
The London stock exchange has faced challenges recently, with a steady stream of companies either delisting or shifting their primary listings to places like New York. Last year, 88 companies delisted or transferred their primary listing from London’s main market, while only 18 took their place. So far this year, there have been just three IPOs on the main market, with a combined market capitalisation at listing of less than £100 million, according to data from the London Stock Exchange.
Sources familiar with the deliberations noted that London’s deep capital markets and a greater number of investors focused solely on UK stocks, compared to those buying exclusively Dutch equities, were key factors in the decision. However, they stressed that implementing planned reforms—such as allowing companies with a euro share price to be included in FTSE indices—was essential to finalising the move.
Banks are set to be invited to pitch for the listing this week. Both Visma and Hg declined to comment on the matter.
Image source: Visma
