November 30, 2021

Software group Misys scraps London IPO plans, joining long list of firms which have ditched floats post-Brexit

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02ea8ae400000578-3878046-image-a-22_1477566512210By MARK SHAPLAND FOR THIS IS MONEY From Daily Mail UK

When plans were unveiled 3 weeks ago, Misys boss had brushed off Brexit
O2’s Spanish owner Telefonica has also canned a planned £10bn IPO

Financial software firm Misys has pulled the plug on its London stock market listing due to ‘market conditions’, the latest firm to pull a float in the UK in recent weeks.
The IPO had been set to be the biggest UK flotation so this year, at around £5.5billion, but instead Misys’s plans join the scrapheap.
The private equity-controlled firm said: ‘Despite encouraging institutional support, Misys Group has decided not to proceed with its potential initial public offering at the current time due to market conditions.’Misys – which provides software to the likes of Lloyds Banking Group, Barclays and HSBC, as well as other lenders worldwide – had planned to list in early November, four years after it was taken private by Vista Equity Partners in a £1.3billion deal.
The decision to ditch the listing means its owners have missed out on a lucrative payday.

392b60cf00000578-0-image-a-4_1477559901257Misys is owned by Tahoe Holdco Cayman – a business registered in the Cayman Islands tax haven. That in turn is controlled by Vista, which is American.
Vista was founded in 2000 by tycoon Robert Smith, 53, a former Goldman Sachs banker, who has a private wealth of about £2billion.

It is not known how much Mr Smith was expected to make from a float but under his leadership Misys has merged with Turaz – a former division of Thomson Reuters – and in 2014 it bought Silicon Valley firm IND Group for an undisclosed sum.
Last year’s results showed the firm had revenues of £715.8million, with earnings at £259.5million.
However, the company’s debts soared from £107million to £1.3billion over the year.
Misys employs 4,700 people globally, about 10 per cent of them in London, and counts 48 of the world’s top banks as its clients.
The firm was originally founded in 1979 as a computer systems supplier to UK insurance brokers and debuted on the London Stock Exchange in 1990.
Misys’s announcement of cold feet comes after Spanish telecoms giant Telefonica last night said it would not list mobile phones network O2 in the UK in 2016, also citing ‘choppy conditions’.
The firm had hoped to sell O2 shares to millions of ordinary investors in the first major UK retail offering since the government’s Royal Mail flotation three years ago.

UK stock market listings have struggled to get off the ground since the Brexit vote, with TI Fluid Systems recently cancelling its IPO, and waste management firm Biffa slashing the price of its flotation.
Meanwhile fitness chain Pure Gym said market volatility was to blame when it scrapped plans for its stock market debut earlier this month.
Altogether Brexit uncertainty has caused the total value of IPOs over the past three months to fall to levels not seen since 2012, according to recent research by Henderson Managed Investment Trust.
This is despite the benchmark FTSE 100 equity index breaking through an all-time high earlier this month before quickly falling back.
Analysts think the Footsie’s high masked some fundamental macroeconomic concerns, namely the pending US election next month and an expected Federal Reserve rate hike in December; a slowdown in global growth engine China; volatile oil prices; and a muted outlook for the fourth quarter as Brexit vote worries weigh.

IMAGES:

Traders woe: The Misys IPO had been set to be the biggest UK flotation so this year, at around £5.5billion, but instead it joins the scrapheap together with many others post the Brexit vote

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Hot: Tycoon Robert Smith married former Playboy model Hope Dworaczyk, 31, in a lavish ceremony on the Amalfi Coast in Italy

For more on this story go to: http://www.thisismoney.co.uk/money/markets/article-3878046/Software-group-Misys-scraps-IPO-plans-joining-long-list-firms-ditch-floats-post-Brexit.html#ixzz4OI3YBISF

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