€19bn Visma selects London for tech IPO, marking a rare success for the UK stock market.

      Norwegian software company Visma has tentatively selected London for its initial public offering (IPO) next year. This could represent a rare success for the UK's struggling stock market, provided that the government fulfills its promised reforms.

      In 2006, British private equity firm Hg purchased a 70% interest in Visma at a valuation of £380 million (€445 million). The company, which develops accounting, payroll, and HR software solutions, is now valued at approximately €19 billion.

      According to the Financial Times, Visma initially considered a listing in Amsterdam but has shifted its focus to London.

      If it proceeds with the IPO, it would contrast with the recent trend of companies relocating their primary listings away from the London Stock Exchange (LSE), opting to delist completely or choosing New York instead.

      Earlier this month, British fintech company Wise announced its decision to transfer its primary listing to New York. UK chip designer Arm opted to go public there in 2023, and Sweden's Klarna has also announced intentions to list in the Big Apple.

      In 2024, data from the LSE indicated that 88 companies either delisted or moved their primary listings away from London's main market, while only 18 new companies entered.

      Analysts have previously noted that technology firms are attracted to the U.S. due to higher valuations, more robust capital markets, and a greater appetite for risk among investors.

      To counteract this trend, the British government implemented significant changes to listing regulations last year in an effort to streamline the IPO process.

      Poppy Gustafsson, the UK government's investment minister and former CEO of cybersecurity firm Darktrace, mentioned that considerable efforts have been made to rejuvenate the IPO market.

      “There are several promising IPOs waiting in line,” she stated to delegates at the annual Investment Association conference in London, as reported by Financial News London.

      However, according to the Financial Times, Visma is seeking further reforms to the listing process before it fully commits to a London IPO, stating that its plans are dependent on a more thorough implementation of the new rules.