Software giant Misys has appointed advisers for what could become London’s biggest initial public offering (IPO) this year amid a slowdown in listings, The Sunday Times has reported. The banking software developer is said to be pressing ahead with plans for a £5.5-billion float before the American presidential election in November.
The Sunday Times reported yesterday that Misys, which provides banking software solutions, had appointed investment adviser Moelis to handle the tech group’s float. City sources told the newspaper that Moelis in turn had hired a team of investment bankers, including Deutsche Bank, to raise cash.
The software banking group, founded in 1979, was a FTSE 100 constituent at the height of the dotcom boom, before falling on hard times after the 2000 crash in technology stocks. It was taken private by American buyout firm Vista Equity Partners in 2012. Earlier this month, The Sunday Times reported that Vista was working with investment banks Goldman Sachs, Bank of America Merrill Lynch and JP Morgan on a review of its options. After sounding out potential investors, Vista’s advisers believe that the tech giant could be valued at £5.5 billion. Sources told the newspaper at the time that the buyout fund had chosen London as its first choice after weighing up a New York offering.
The Misys IPO, which is expected ahead of the American presidential election in November, would be the biggest London float since Worldpay’s (LON:WPG) listing last year. This year has seen a slowdown in London floats amid uncertainty ahead of the EU referendum, and market turbulence in the wake of the result. The Sunday Times notes that listings worth £15 billion were pulled in the aftermath of the Brexit vote.