Financial technology company, Misys, has had to adjust its expectations from its floatation, following the uncertainties in UK markets over the Brexit. As anticipation heightened over a hard Brexit, investors and companies have been less than optimistic regarding returns from UK firms. Misys is following the footsteps of other companies that have either lowered floatation values or decided not to float. Earlier this month, Misys was believed to have received an equity valuation of about £4.5 billion pounds. The company’s owner, Vista Equity Partners, bought the former FTSE 100 company in 2012 for £1.3 billion. Now, it is likely the valuation will be within the region of £3.5 billion, as Vista is eager to ensure the deal takes place, which includes the £1 billion of debt on their balance sheet. Misys is also expected to float only 20 percent of the company, which is significantly below the 25 percent prerequisite for an IPO.
The Misys IPO is expected to be the largest so far, since Worldpay’s IPO in October 2015 raised £6 billion. As Britain prepares to leave the European single market, many companies have been hard-hit by market speculation. Doughnut maker, Krispy Kreme, abandoned plans of floating in UK and opted instead to be sold back to its American parent company. TI Fluid Systems and Pure Gym also abandoned plans for a floatation. Spanish telecoms giant Telefonica, still intends on floating O2 later in the year, but that might depend largely on the success of the Misys deal. Hollywood Bowl and Biffa are expected to have their IPOs later in the year as well, though Biffa has also been forced to lower its valuation.