The London Stock Exchange is preparing to do battle for one of Europe’s biggest initial public offerings for years as Verisure, the domestic security systems provider, kicks off plans for a flotation valuing it at more than €20bn (£16.7bn).
Sky News has learnt that Verisure’s owner, the private equity firm Hellman & Friedman (H&F), is in the preliminary stages of drawing up plans for a public listing of Verisure.
People close to the company said this weekend that a flotation was unlikely to take place for between 12 and 18 months, although they cautioned that no formal decisions of any kind had been taken.
Exchanges in London and Amsterdam are regarded as the likeliest destinations for a listing, although public markets in Stockholm – Verisure is Swedish-headquartered – and Zurich are also expected to form part of the decision-making process.
Verisure has roughly 5.5m customers in 17 countries, including the UK, Brazil, Chile, Italy and the Netherlands.
Under Austin Lally, its chief executive, it has been transformed into a lucrative subscription model-based business pitching technologically sophisticated services to its customer base.
Four years ago, the company was responsible for one of the biggest dividend recapitalisations in the history of the private equity industry when it was reported to have paid out more than $6bn to its owners.
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It was unclear this weekend how realistic London Stock Exchange Group’s chances were of winning what would be one of its biggest overseas listings for years.
News of Verisure’s early-stage plans comes, though, at what is seen as an increasingly critical time for the LSE.
Hopes that Shein, the Chinese-founded online fashion group, would stage a float in London this year possibly valuing it at £50bn have been buffeted by a rocky appearance before MPs on the business and trade select committee this week.
Liam Byrne, the committee chair, has written to the Financial Conduct Authority, to express concerns about evidence given by the company.
Other candidates for IPOs in London this year include Shawbrook Group, the mid-tier bank, as Sky News reported last weekend.
Data compiled by EY, the professional services firm, showed that 2024 was among the quietest years on record for new issuance, with just eight new listings – and only three on the main market.
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Just £778m in proceeds was raised during the year through IPOs, down 18% on the previous year.
At the same time, the momentum of companies drifting away from London gathered pace with Ashtead, the equipment rental company, saying it would relocate its listing to New York.
Flutter Entertainment, the gambling group behind Paddy Power and Betfair, has already moved its primary listing to the US.
People close to Verisure said they expected that the company would be valued at more than €20bn, with some market sources suggesting the eventual figure could be as high as €30bn (£25.2bn).
That figure includes Verisure’s debt, meaning that its equity market capitalisation would be smaller.
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H&F, which ranks among the world’s most successful buyout firms, became Verisure’s majority shareholder in 2015 when it bought the stake held by Bain Capital, another private equity group.
At the time, the company was known as Securitas Direct Verisure Group, with it continuing to trade under the Securitas Direct brand in some markets.
A spokesman for Verisure declined to comment, while H&F did not respond to an emailed request for comment.
