Private equity firm Hg is gearing up for what could become one of the most significant technology IPOs in recent UK history by preparing to take Visma public in London in early 2026. Valued at approximately €19 billion, the IPO is anticipated to provide a much-needed boost to the London Stock Exchange, which has faced challenges in attracting new listings amid a wave of companies delisting or moving their primary listings elsewhere. Last year alone, 88 firms delisted from the LSE, while only 18 new companies joined the main market, underscoring the importance of a major tech listing like Visma’s.

Visma, a provider of cloud-based accounting, payroll, invoicing, and HR software tailored mainly for small and medium-sized enterprises (SMEs) across Europe, has been under Hg’s ownership since 2006. Over this time, Hg and its co-investors—who collectively own about 70% of the company—have overseen vast expansion through more than 350 bolt-on acquisitions. The firm now generates annual revenues of nearly €2.8 billion and employs around 16,000 people. Besides Hg, notable minority shareholders include Singapore’s sovereign wealth fund GIC and US-based TPG, reflecting a strong institutional backing from globally reputable investors.

While Visma initially contemplated an IPO in 2023, it instead opted for a private share sale to investors such as Jane Street and Altaroc, a move that helped to broaden its shareholder base without going public. The rationale for revisiting the public markets now is rooted in Visma’s considerable growth and scale, which have made sustaining full privacy increasingly complex. Market conditions appear more favourable in 2026, with a recovering IPO environment in Europe and robust financial performance from Visma, including a 17% increase in third-quarter revenues to €694 million and a 26% rise in EBITDA to €256 million.

London ultimately emerged as Visma’s preferred listing venue over Amsterdam and Oslo due to the capital market’s deeper liquidity and a broader base of UK-focused institutional investors. However, the listing still hinges on regulatory reforms in the UK, particularly around the eligibility of euro-denominated shares for inclusion in FTSE indices. Such a reform would facilitate broader investor participation and enhance the attractiveness of Visma’s shares on the LSE. Hg is expected to retain a significant stake in Visma post-IPO, signalling a continued long-term commitment.

Hg’s investment journey with Visma has been notable for its scale and duration. The firm initially acquired Visma in 2006 for around $500 million, and since then, the company has grown remarkably to a valuation of approximately €19 billion. Several major transactions occurred along the way, including a landmark European software buyout valued at $5.3 billion, led by Hg, and further majority investments culminating in Visma being regarded as the largest software buyout globally. Other prestigious institutional investors such as Warburg Pincus, CPPIB, and General Atlantic have also joined Hg in backing Visma at various stages, helping to propel its growth trajectory.

Despite the positive outlook surrounding the IPO, Hg and Visma have kept a measured public stance, with no official comments on the listing plans as banks prepare pitches for their roles in the process. The potential flotation represents not just a milestone for Visma but also a litmus test for London’s tech equity market revival, which has struggled to reclaim past vibrancy amid shifting corporate listings and economic uncertainties.

📌 Reference Map:

Source: Noah Wire Services