Visma may delay €19B London IPO as software sell-off deepens
What's the deal? Visma, the €19bn Norwegian software company backed by Hg CapitalDealroom has a profile for this one. Try Dealroom →, may delay its London IPO until the second half of 2026 after a brutal sell-off hammered global software stocks. The private equity-owned firm had provisionally selected London for what would be the city's biggest float in years, but deteriorating market conditions have forced a rethink. Hedge funds have piled into short positions against software stocks, making an estimated $24bn betting against the sector so far this year, according to S3 Partners.
Why now? The sell-off accelerated following AnthropicDealroom has a profile for this one. Try Dealroom →'s release this week of a legal productivity toolDealroom has a profile for this one. Try Dealroom →designed to automate tasks like contract reviews and compliance checks. Markets reacted sharply, with concerns that expensive software subscriptions could become easier and cheaper to replace as general-purpose AI improves. The iShares Expanded Tech Software ETF has tumbled over 20% this year. This backdrop makes pricing a large IPO difficult, particularly for a business that Visma reported €185m in pre-tax profits from €2.8bn in revenues last year.
What could go wrong? Investors increasingly treat software as structurally vulnerable rather than cyclically weak, suggesting the downturn may not be temporary. Hg has owned Visma since 2006, backing its expansion through 350 acquisitions and rolling its stake into newer funds. The firm still controls around 70% alongside co-investors like Singapore's GIC and US firm TPG. This lack of a forced exit timeline gives Hg flexibility to wait for cleaner markets, but prolonged delays could see Visma pivot to another exchange or remain private longer.
The signal: London's IPO revival remains fragile and heavily dependent on a handful of large transactions landing successfully. The exchange saw 88 companies delist or move their primary listing in 2024, replaced by just 18 new entrants. A €20bn-plus listing would have signalled that the capital could still attract high-quality tech firms, particularly after listing reforms implemented by Britain's financial regulator. If software remains out of favour through 2026, London's pipeline could thin again just as momentum was returning. Visma declined to comment.
Sources:
Reuters
City A.M.
Redmayne Bentley
Capital Brief
Investing.com
Waselius & Wist
Techzine
B.S.
