Visma IPO Delayed as Software Stocks Fall – FT.com

Plans for what was anticipated to be London’s largest initial public offering (IPO) in years are potentially facing delays. Visma, a software group valued at €19 billion and backed by private equity, may postpone its listing due to recent volatility in the software sector.

Potential IPO Delay

Visma, currently owned by British buyout firm Hg, had been considering a listing in the UK as early as the first half of this year, according to sources familiar with the matter. However, the timeline could now shift to the latter half of 2026, though no final decisions have been made. A listing in the second quarter remains a possibility.

Market Conditions and Long-Term Ownership

Those close to Visma and Hg have indicated a desire to avoid rushing into a decision, given the private equity firm’s long-term investment horizon. The current market environment, marked by a sell-off in software stocks, is complicating the process. Fears surrounding the impact of artificial intelligence (AI) groups on existing businesses have contributed to declines in the tech-focused Nasdaq, falling 1.4 percent on both Tuesday and Wednesday, with some stocks experiencing double-digit losses.

Did You Know? Visma was initially taken private in 2006 by Hg at a valuation of approximately £380 million.

Despite the challenging conditions, preparations for a potential listing are continuing. The decision by Visma to prioritize London over Amsterdam was previously seen as a positive development for the City.

Hg’s Investment History

Hg has held a stake in Visma since 2006, consistently reinvesting through its funds and realising returns through sales to other investors. Currently, Hg owns around 70 percent of Visma, with co-investors including Singapore’s GIC and US private equity group TPG holding the remaining shares. Visma previously explored an IPO in 2023 but ultimately opted for a private share sale, valuing the company at €19 billion.

Expert Insight: The potential delay highlights the sensitivity of IPO markets to broader economic and technological shifts. A cautious approach by Hg and Visma reflects the need to secure favorable valuation and investor confidence in a rapidly evolving landscape.

This deliberation occurs alongside a broader uptick in European IPO activity following a post-pandemic slowdown. Europe’s IPO market experienced its strongest start to a year recently, with Czechoslovak Group (CSG) raising €3.8 billion in late January. Other companies considering London listings include Waterstones, RAC, and units of CK Hutchison.

Frequently Asked Questions

What type of software does Visma provide?

Visma provides accounting and payroll software to small and medium-sized businesses.

Who are the major shareholders of Visma?

Hg owns approximately 70 percent of Visma, with co-investors including Singapore’s GIC and US private equity group TPG.

What happened with Visma’s IPO plans in 2023?

Visma considered an IPO in 2023 but instead chose to pursue a private share sale to investors like Jane Street and Altaroc.

How might the rise of AI influence the future of software companies like Visma and their decisions regarding public offerings?