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The potential initial public offering (IPO) of IT giant Visma is generating important buzz, with the London Stock Exchange emerging as a likely destination. However, Folketrygdfondet, a major shareholder, is advocating for the Norwegian success story to list on the Oslo Stock Exchange. the final decision remains uncertain, but the debate highlights the complexities of balancing international appeal with national interests in the financial markets.
Did You Know? Visma’s potential IPO could be one of the largest listings in Norway’s history, drawing significant attention from investors and market analysts alike.
Visma’s IPO Journey: A Timeline
Visma’s path toward a potential IPO has been marked by strategic decisions and market fluctuations. Here’s a brief overview:
| Year | Event | Valuation (EUR) |
|---|---|---|
| 2021 | Folketrygdfondet invests in Visma | 16 billion |
| 2022 | IPO plans put on hold due to market volatility | N/A |
| 2023 | Valuation increases with new investors | 19 billion |
London or Oslo: The Listing Dilemma
Recent reports from the Financial Times and Bloomberg, citing anonymous sources, suggest that Visma is leaning towards the London Stock Exchange for its IPO. However, Kjetil Houg, CEO of Folketrygdfondet, has publicly expressed his preference for an Oslo listing, emphasizing Visma’s Norwegian roots and its potential to attract local investors.
“Visma is a Norwegian success story that should have been listed on the Oslo Stock Exchange,” said Houg, according to reports. Folketrygdfondet, as a significant stakeholder, could be compelled to divest if Visma pursues a listing outside the Nordic region.
Pro Tip: Companies frequently enough weigh factors like investor access, regulatory surroundings, and market visibility when choosing a listing location.
Visma’s Growth Trajectory
Visma has demonstrated remarkable growth, particularly through strategic acquisitions. Since Merete Hverven assumed the role of CEO in 2020, Visma has acquired 180 companies. In the past year alone, Visma invested NOK 9 billion in acquiring 33 companies. This aggressive expansion strategy has fueled significant revenue growth,with turnover reaching 2.8 billion euros-a 27% increase from the previous year.
Visma provides cloud-based accounting solutions to businesses across Europe and Latin America. The company’s robust growth is also reflected in its increasing valuation. In 2021, Visma was valued at EUR 16 billion (NOK 165 billion), which rose to EUR 19 billion (NOK 215 billion) by 2023.
Valuation Considerations
according to Joachim Behncke, valuation is not always about maximizing the price. Rather, it is indeed about the company’s future progress and ensuring new investors have a positive experience. Behncke suggests that a fair valuation allows for balanced growth opportunities.
Evergreen insights: The Broader Context
The debate over Visma’s listing location reflects a broader trend of companies weighing the benefits of international markets against the advantages of local exchanges. Listing on a major international exchange like London can provide access to a larger pool of investors and greater visibility. However, listing in Oslo could appeal to patriotic investors and simplify regulatory compliance.
The Norwegian economy, while robust, is also heavily reliant on its sovereign wealth fund, the world’s largest, valued at approximately $1.6 trillion as of 2024. This fund, managed by Norges Bank Investment Management, plays a crucial role in investing Norway’s petroleum revenues for future generations Norges Bank Investment Management.
Frequently Asked questions About Visma and IPOs
- Why is Visma considering an IPO?
- Visma, a major IT company, is exploring an IPO to further its growth and provide liquidity to its investors.An IPO can provide capital for acquisitions and expansion.
- What are the potential listing locations for Visma’s IPO?
- While the London Stock Exchange has been mentioned as a likely destination, a major shareholder, Folketrygdfondet, prefers the Oslo Stock Exchange for the Visma IPO.
- How has Visma grown in recent years?
- Visma has experienced substantial growth through numerous acquisitions. Since 2020, Visma has acquired 180 companies, demonstrating its aggressive expansion strategy.
- What was Visma’s valuation in 2023?
- In 2023, Visma’s valuation reached 19 billion euros, equivalent to approximately NOK 215 billion, reflecting its increasing market value and growth.
- What is Folketrygdfondet’s role in Visma’s ownership?
- Folketrygdfondet is one of Visma’s largest shareholders and has publicly stated its preference for Visma to be listed on the Oslo Stock Exchange, emphasizing its Norwegian roots.
- How did Visma perform financially in the last year?
- Visma’s turnover landed at 2.8 billion euros in the last year, marking a 27% increase from the previous year. This growth underscores Visma’s strong market position and successful business strategy.
- What type of solutions does Visma provide?
- Visma supplies cloud-based accounting solutions through a large network of companies operating across Europe and Latin America, catering to a wide range of business needs.
The details provided in this article is for informational purposes only and does not constitute financial advice. Consult with a qualified financial advisor before making any investment decisions.
As Visma navigates its IPO plans, the decision between London and Oslo will likely hinge on a combination of strategic considerations, market conditions, and shareholder preferences.The outcome will not only shape Visma’s future but also send a signal about the attractiveness of the Norwegian stock market.
What factors do you think should weigh most heavily in Visma’s decision? How might an Oslo listing benefit the Norwegian economy?
Share your thoughts and join the discussion below!
