Visma's London IPO: A Catalyst for UK Market Revival and European Tech Listings

The UK's capital markets have long been a cornerstone of global finance, but recent years have exposed cracks in its once-dominant position. With a record-low number of IPOs in 2024 and a wave of delistings, London has struggled to retain its allure for high-growth technology firms. Enter Visma, the €19 billion Norwegian software giant, whose impending 2026 London IPO could serve as the spark needed to reignite the UK's equity markets and redefine the trajectory of European software listings.

A Strategic Bet on London's Reforms

Visma's decision to list in London over Amsterdam is no accident. The UK's 2024 regulatory overhauls—streamlined prospectus requirements, the removal of the “premium vs. standard” listing distinction, and the inclusion of euro-denominated companies in FTSE indices—have been meticulously designed to attract international tech firms. These reforms address a critical gap: the UK's historically weaker appeal for non-sterling-based companies. By allowing Visma's shares to be included in FTSE indices, the UK has unlocked access to index-tracking capital, a powerful draw for institutional investors.

The move also underscores London's deep capital markets and its concentration of UK-focused institutional investors, such as pension funds and sovereign wealth funds, which are better positioned to absorb large IPOs than their Dutch counterparts. For Visma, this means a broader investor base and enhanced liquidity—a critical factor for a company with 2.1 million customers across the Nordic, Benelux, and Baltic regions.

Financials That Justify the Hype

Visma's financials are a testament to its dominance in the European software sector. In the first half of 2025 alone, the company reported €1.55 billion in revenue and €493 million in adjusted EBITDA, with recurring revenue at 93% and EBITDA margins consistently above 30%. These metrics position Visma as a high-margin, low-risk consolidator, having executed 15 M&A transactions in 2025 alone. Its valuation of €19 billion (as of late 2023) reflects a 6.5x revenue multiple and 19x EBITDA multiple, which, while lower than global peers like Intuit or Xero, is justified by its regional focus and private equity ownership structure.

The company's ownership by Hg Capital (70%), TPG, and GIC means the IPO will likely involve a 20–25% public float, with gradual sell-downs planned in subsequent years. While this introduces overhang risk, it also signals confidence in the company's long-term value. For investors, the key question is whether Visma can maintain its acquisition-driven growth in a public market context, where integration challenges and operational efficiency will be under closer scrutiny.

A Test for London's Post-Brexit Ambitions

Visma's IPO is more than a corporate milestone—it's a litmus test for the UK's post-Brexit financial strategy. The government's Listings Taskforce, led by Chancellor Rachel Reeves, has made attracting tech listings a priority, and Visma's €19 billion valuation could validate these efforts. A successful flotation would signal to companies like Wise, Flutter, and AstraZeneca that London remains a viable alternative to the US, where regulatory scrutiny and higher costs have pushed some firms to reconsider.

However, risks persist. Regulatory delays in implementing the euro-FTSE inclusion mechanism could dampen investor enthusiasm, and the UK's broader IPO market remains fragile. In 2025, the UK raised just £160 million through IPOs in the first half of the year, the lowest since 1997. Visma's success will depend on its ability to generate strong demand despite these headwinds.

Strategic Implications for European Tech Listings

Visma's IPO could also catalyze a shift in European tech listings. For years, European software companies have favored the US for its deeper liquidity and higher valuations. But with the UK's reforms and the EU's ongoing regulatory complexities, London is emerging as a compelling middle ground. If Visma's listing is well-received, it could pave the way for other regional consolidators—such as IFS or Unit4—to follow suit, creating a new ecosystem of European tech listings in the UK.

Investment Considerations

For investors, Visma's IPO presents a unique opportunity to gain exposure to a high-margin, cash-generative software business with a proven track record of execution. However, several factors warrant caution:
1. Currency Risk: As a euro-denominated company, Visma's valuation is sensitive to EUR/GBP exchange rate fluctuations.
2. Private Equity Overhang: The gradual sell-down of Hg's stake could pressure the stock in the short term.
3. Market Conditions: A broader economic slowdown or regulatory setbacks could dampen investor appetite.

That said, the IPO's potential to catalyze a broader revival in London's equity markets makes it a strategic inflection point. Investors with a medium-term horizon and a tolerance for volatility may find value in the offering, particularly if the company's inclusion in FTSE indices materializes.

Conclusion

Visma's London IPO is poised to be a watershed moment for both the company and the UK's capital markets. By leveraging regulatory reforms and its own financial strength, Visma could not only secure a successful flotation but also signal to global investors that London remains a viable hub for tech innovation. For European software firms, the IPO may mark the beginning of a new era—one where regional consolidators can thrive without crossing the Atlantic. As the UK's financial sector braces for this pivotal event, the world will be watching to see if London can reclaim its crown as the beating heart of European capital markets.