IPO Misys’ initial public offering (IPO) is not going smoothly as planned with its value cut by 20%.

As Banking Technology reported earlier this month, Misys planned to proceed with the IPO on the London Stock Exchange in early November 2016.

The firm is currently residing in the hands of US-based Vista Equity Partners and is set on a £5.5 billion float.

However, according to a source close to the Misys listing that spoke with Reuters, the vendor is “struggling to convince investors it should be valued in line with rival Temenos as it readies to list shares in London”.

The source says investors are “giving it an enterprise value closer to British accounting software firm Sage Group”.

Underwriters have cut the enterprise value for Misys to a range of £4.1 billion to £4.7 billion, 20% below the initial estimations reported by the media, according to a second source close to the deal that spoke to Reuters.

Temenos is Misys’ closest rival, and both get about 55% of their revenue from Europe. However, based on their official website figures, Temenos says it has 600 core banking customers while Misys has just half that number.

Misys may be unsettled by these events as it has just issued a press release highlighting its work at Banco CTT, a bank launched in early 2016 by CTT Correios de Portugal, the Portuguese post office.

Many fintech news outlets published this story, believing it to be recent. However, Banking Technology covered the Banco CTT project in June, highlighting the Misys core go-live at the bank at the start of the year.

@banking
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