Misys scraps IPO
Misys’ initial public offering (IPO) has been scrapped.
It had planned a £5.5 billion float but says in a statement that it “decided not to proceed… at the current time due to market conditions”.
As Banking Technology reported this month, the IPO preparations didn’t go as smoothly as planned with the company’s shares value cut by 20%.
According to a source close to the Misys listing that spoke with Reuters, the vendor was “struggling to convince investors it should be valued in line with rival Temenos as it readies to list shares in London”.
The source said investors were “giving it an enterprise value closer to British accounting software firm Sage Group”.
Underwriters 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.
At that time, Misys appeared to be unsettled by these events as it issued a series of press releases about its successful customer onboarding, including an announcement about signing a deal with 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.