Software firm Alfa has hired a team of advisers to test the water for a potential £500m stock market listing.
Alfa, which sells its products to the equipment leasing and car finance industries, is understood to have appointed bankers from Barclays and Numis Securities.
The appointed advisers will assess fund managers’ interest in a share sale, according to the Daily Telegraph.
A final decision on a float has not been made and if bosses do proceed with a listing, it may not take place until next year.
Few companies have debuted on the London Stock Exchange in recent months after nervousness about the impact of Brexit prompted a number of firms including O2, owned by Telefonica, to postpone float plans.
Last October, Sky News reported that investment bankers from Rothschild had been hired to review Alfa, spurring speculation that it was considering a sale or a float.
An initial public offering would give employees a windfall. Co-founder Andrew Page is Alfa’s controlling shareholder, with the rest of the firm owned by management and other employees.
Alfa's most recent Companies House accounts showed pre-tax profits rose over 25 per cent to £23.5m in 2015, on revenues up to £54.3m from £43.3m a year earlier.
Alfa did not respond to requests for comment.