Alfa Financial Software to list in largest UK tech IPO since 2015

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Alfa Financial Software has announced plans to join the London Stock Exchange next month, in what will be the largest UK tech listing for two years.

The initial public offering is expected to value Alfa, which specialises in software for the asset finance industry, at more than £800m.

The company said a public listing will allow it to increase its profile and help it to reach more customers in new geographies.

Alfa already supplies companies including Bank of America, Barclays and Mercedes-Benz, and generated revenues of £73.3m in 2016. Adjusted earnings before interest and tax grew by 45 per cent over the year to £32.8m, though profit before tax slipped from £22.9m to £17.2m as a result of increased share-based compensation.

The company is currently majority-owned by CHP Software, which is controlled by Alfa’s executive chairman and chief executive. It will sell around a quarter of Alfa’s shares.

The sale will make Alfa the largest tech group to join the market since cyber security group Sophos, which listed in July 2015. It will become one of only a small number of large publicly-listed British technology groups, with a valuation of more than £800m making it one of the nine largest tech groups on the London Stock Exchange.

Andrew Denton, Alfa chief executive, said:

The asset finance market offers us huge growth opportunities. We have a track record of strong returns and an IPO of Alfa will assist us in continuing the momentum of the business in the years ahead.

Andrew Page, Alfa executive chairman, said:

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

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