Visma’s €19bn London IPO Boosts UK Stock Market
▼ Summary
– Norwegian software firm Visma has provisionally chosen London for its IPO next year, potentially boosting the UK’s struggling stock market if promised reforms are implemented.
– Visma, now valued at €19bn, was majority acquired by British private equity firm Hg in 2006 and previously considered listing in Amsterdam.
– The IPO would contrast with the trend of companies leaving the London Stock Exchange (LSE), as seen with firms like Wise, Arm, and Klarna opting for New York listings.
– The UK government introduced listing rule changes in 2023 to attract IPOs, but Visma seeks further reforms before finalizing its London listing.
– In 2024, 88 companies left London’s main market, while only 18 joined, highlighting the challenges facing the LSE in retaining and attracting listings.
The UK stock market could receive a major boost as Norwegian software giant Visma eyes a London IPO valued at €19 billion next year. This potential listing would mark a significant win for Britain’s struggling financial hub, provided the government delivers on promised regulatory reforms.
Visma, specializing in accounting, payroll, and HR software, has grown exponentially since British private equity firm Hg acquired a 70% stake in 2006 for €445 million. Now valued at €19 billion, the company initially considered Amsterdam but has shifted focus to London, signaling renewed confidence in the UK market.
This move bucks a worrying trend of firms abandoning the London Stock Exchange (LSE) for New York or delisting entirely. Recent examples include fintech Wise relocating its primary listing to the US, chip designer Arm’s 2023 New York debut, and Swedish fintech Klarna’s plans to list stateside. Data from the LSE reveals a stark imbalance, 88 companies left London’s main market in 2024, while only 18 new listings joined.
Experts attribute the exodus to higher valuations, deeper capital pools, and greater risk tolerance among US investors. To counter this, the UK government overhauled listing rules last year, streamlining IPO processes to attract more businesses. Poppy Gustafsson, the UK’s investment minister and former Darktrace CEO, emphasized progress in reviving the IPO pipeline, noting several promising candidates are waiting in the wings.
However, Visma’s commitment hinges on further reforms. The company has reportedly stressed that its London listing depends on stricter implementation of the new regulations. If successful, this IPO could serve as a turning point for the LSE, proving it can still compete on the global stage.
The stakes are high for both Visma and the UK. A successful listing would not only validate recent policy changes but also encourage other tech firms to reconsider London as a viable destination for going public. With investor confidence hanging in the balance, all eyes are on whether the government can deliver the changes needed to secure this landmark deal.
(Source: The Next Web)
