Alfa Financial Software Holdings Plc, a software firm which caters to the financial services industry, has announced that it will be listed on the London Stock Exchange in an IPO in the UK next month.
Based in London, Alfa made adjusted earnings before interest and tax of 32.8 million pounds in 2016. In a statement, it voiced the hope that the listing would help it win market share by drawing in new customers that are attempting to replace legacy or in-house systems that have failed to keep up with evolving regulations.
Given that there still remains a lot of uncertainty around Britain’s future outside of the EU single market, investor confidence has witnessed a serious dip, with funds raised by British firms holding IPOs falling 28 percent in the first quarter as opposed to a year ago, according to data from Reuters.
Founded in 1990, it claims to have over 250 people in employment and is expected to be valued at £800 million following the listing, therefore rendering it the biggest listing the UK has seen over the past two years. The company also holds offices in Detroit, Los Angeles, Auckland and serves clients across 18 different countries.
Andrew Page, the 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.
Alfa, which boasts the patronage of clients like Bank of America, Barclays, Mercedes-Benz and Nordea, is owned by majority shareholder CHP Software. Andrew Denton, the chief executive, is very excited about the next stage in the company’s development, and noted that he believes the firm has all the necessary attributes to survive as a listed business. He said:
We have built long term, trusted relationships with our customers and continue to help them address the challenges they face in an increasingly regulated and changing market. We have broadened our blue chip customer base and worked closely with them to develop a world-class technology platform. 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.
