A major UK tech IPO is coming as Alfa Financial Software reveals London Stock Exchange float plans valuing it at £800m

Lynsey Barber
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The Square Mile - London's Financial District
Alfa akes software to help companies with asset financing (Source: Getty)

A UK firm which provides software for the likes of Barclays and Mercedes has announced its intention to float on the London Stock Exchange.

Alfa Financial Software will float on the main market as early as June, which is expected to value the firm at more than £800m.

“Alfa has established itself as a world class technology company with a market leading position in asset finance, which is a substantial global market with many structural growth drivers," said executive chairman Andrew Page.

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"Many promising growth opportunities have been identified which Alfa is uniquely placed to capitalise upon going forward."

Last year the 27-year-old firm reported revenues of £73.3m and adjusted earnings before tax and interest of £32.8m, 32 per cent higher than the previous year. It's headquartered in London and employs more than 250 people in four offices around the world.

Page and chief executive Andrew Denton are majority owners of the firm through CHP Software and will float 25 per cent of the company, the minimum needed for a premium listing.

Around five per cent of shares are owned by staff, but Denton told City A.M. the flotation will act as "another weapon in our arsenal" to help it attract and retain employees by allowing it to offer stock options.

Moving from being a private company to a public one will also boost its reputation among customers, said Denton, who added floating during Brexit negotiations and in the midst of a snap General Election was unlikely to be problematic.

"We don't really think it's going to impact us," he said.

"We're extremely confident in our position and a global robust market."

The last major tech listing in the UK, London's biggest ever in the sector, was Sophos in 2015, which was valued at more than £1bn.

Fellow financial technology company Misys would have surpassed that but it pulled its plans for a listing in London towards the end of 2016, blaming market turbulence, though it could revisit plans again this year.

Read more: London's IPO market set to accelerate after "slow and steady" start to 2017

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