Hg’s software group, valued at €19 billion, has provisionally chosen the UK over Amsterdam for its IPO next year. London was chosen because of its extensive capital markets, according to people familiar with the considerations.
This was reported by the Financial Times. The British investment company Hg has owned Visma, which provides accounting and payroll software to small and medium-sized enterprises, since 2006. Hg acquired the company from the stock exchange for approximately £380 million. Since then, the private equity firm has reinvested in Visma several times through new funds and sold part of it to external investors. Visma is now worth €19 billion.
Hg and its co-investors currently own approximately 70 percent of Visma. The remaining shares are held by minority shareholders, including Singapore’s GIC and the American investment group TPG. Visma had previously considered an IPO in 2023 but ultimately opted for a private share sale to Jane Street and Altaroc, among others.
Hg retains a stake in Visma
According to insiders, Visma has grown so large — partly due to 350 additional acquisitions — that it may no longer be able to remain entirely private. Last year, the company posted a pre-tax profit of €185 million on revenue of €2.8 billion. Hg intends to retain a stake in Visma in the long term, according to those involved.
The decision to go public in London early next year is not yet final. It depends on the implementation of promised reforms by both the government and the stock exchange. These are necessary to offset the disadvantages of Brexit.
Boost for London Stock Exchange
The London Stock Exchange is facing a decline in new IPOs and a steady exodus of large companies moving their primary listing to New York or being taken over.
In 2023, 88 companies disappeared from the main market in London or moved their primary listing. Only 18 new listings replaced them. So far this year, there have been only three IPOs on the UK’s main market, with a combined market capitalization of less than £100 million at launch, according to data from the London Stock Exchange.
London was ultimately chosen for the Visma IPO because of the ample capital available and the larger number of investors focused on UK stocks compared to those investing exclusively in Dutch stocks, said people familiar with the discussions.
They added that the implementation of reforms is essential — for example, allowing companies with a euro listing to be included in FTSE indices.
Banks will be invited to register for the IPO this week, according to those involved. Visma and Hg declined to comment.