Misys set for Britain's biggest float of 2016

Banking software group Misys will float in London Image copyright Getty Images

A UK company that supplies software to some of the world's largest banks is returning to the stock market in the biggest float of the year so far.

Misys is expecting to list its shares in London in November in a flotation that could value the company at £5.5bn.

The business hopes to raise £500m to pay down debt and for investment.

Its chief executive, Nadeem Syed, dismissed suggestions that now was a risky time to list its shares following Britain's vote to leave the EU.

Brexit could have a big impact on London's standing as a major important financial centres as well as banks' appetite for investing in new IT at a time of uncertainty.

But Mr Syed said that no more than 13% of its revenue comes from any one country and it counts 48 of the world's 50 largest banks as its customers.

He said changing regulation means the banking sector is investing in technology to manage risk and return more money to shareholders.

"The industry has gone through a shift," he told the BBC.

Misys cited figures from IDC, the market research group, that spending on software by banks could reach as much as $35.8bn by 2019.

Reaching the FTSE 100

Misys was delisted from the FTSE 250 in 2012 when it was bought by Vista Equity Partners.

With an estimated value of £5.5bn, Misys would be big enough to enter the FTSE 100 leading index of companies. However, it would have to wait until the next quarterly review of companies on the FTSE 100 and FTSE 250 indices before it becomes a blue chip business.

It would be only the third technology in the FTSE 100 alongside Sage and Micro Focus.

It is rare that a company is big enough to be permitted to join the FTSE 100 straight away. The last business to do so was Glencore, the mining giant, which was valued at $59.2bn when it floated in London in 2011.

While Misys will be the biggest to float in London so far this year, following the initial public offerings of the likes of Clydesdale Bank and Metro Bank earlier in 2016, it could be dwarfed if Spain's Telefonica chooses to list the mobile operator O2. There is speculation that the business could be worth as much as £10bn.

Other companies such as GoCompare, PureGym, Hollywood Bowl and Biffa, the waste management group, all intend to list their shares in the near future.

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