The owners of Visma,a leading European software company,are nearing the selection of investment banks to manage a potential £16 billion initial public offering (IPO). This listing, anticipated in 2026, could represent one of the London Stock Exchange’s most significant offerings in recent years.

According to sources familiar with the matter, Visma’s board and shareholders have recently evaluated proposals from several prominent investment banks. Citi, Goldman Sachs, JP Morgan, and Morgan Stanley are reportedly among the contenders for key roles in the deal. Multiple banks are expected to be appointed as global coordinators as early as this month.

Visma, headquartered in Norway, provides critical business software solutions – including accounting, payroll, and human resources tools – to over one million small and medium-sized enterprises across Europe. The company has experienced significant growth through both organic expansion and strategic acquisitions, resulting in increased profitability and valuation.

Currently valued at approximately €19 billion (£16.4 billion), Visma’s ownership structure includes a consortium of sovereign wealth funds and private equity firms. Hg, a London-based private equity firm with a prosperous track record in the software sector, holds a majority stake in the company.

The decision to pursue a listing in London, rather than alternative European financial centers like Amsterdam, is viewed as a positive development for the city, which has been working to enhance its appeal to international companies. United Kingdom Chancellor Rachel Reeves recently launched a taskforce dedicated to stimulating IPO activity within the UK, signaling a commitment to attracting investment.

Representatives for visma, through Kekst, a communications firm, and Hg, did not respond to requests for comment regarding the impending IPO appointments.

Background: The Rise of European Software IPOs

The European software market has witnessed significant growth in recent years, driven by increasing digitalization across industries. IPOs of software companies have become increasingly common,reflecting investor confidence in the sector’s potential. Several factors contribute to this trend, including the shift towards cloud-based solutions, the growing demand for automation, and the increasing importance of data analytics.

Historically,London has been a favored destination for technology IPOs,offering access to a deep pool of institutional investors and a well-established regulatory framework. However,competition from other European hubs,notably Amsterdam,has intensified in recent years. The United Kingdom’s recent efforts to bolster its IPO market are aimed at maintaining its competitive edge.

Visma’s potential IPO follows a pattern of consolidation within the European software landscape. Private equity firms have played a key role in driving this consolidation, acquiring and integrating smaller software companies to create larger, more competitive entities. Hg’s involvement with Visma exemplifies this trend.

Frequently Asked Questions

• What is an IPO? An Initial Public Offering (IPO) is the process by which a private company offers shares to the public for the first time, allowing it to raise capital and become publicly traded on a stock exchange.
• What does visma do? Visma provides a range of software solutions for businesses, including accounting, payroll, HR, and other essential business functions.
• who owns Visma? The majority owner of Visma is Hg, a London-based private equity firm. Other shareholders include sovereign wealth funds and other private equity firms.
• Why is this IPO significant? This IPO could be one of the largest listings on the London Stock Exchange in years, signaling renewed investor interest in the UK market.