Core banking supplier Misys’ IPO hit by Brexit

The forthcoming IPO of UK-based core banking supplier Misys is running into strong Brexit headwinds as its equity backers prepare to shear £1 billion off the anticipated value of the firm in response to volatile trading conditions.

Misys has announced plans to float in early November couple of weeks ago, putting a $5 billion price tag on the value of the business.

In the weeks since the announcement, EU politicos and Tory Brexiteers have made increasingly hardline statements about terms for Britain’s exit from the European Union, shattering market resilience.

The Sunday Times has reported that Misys’ private equity backers have approached the UK Listing Authority for permission to sell just a fifth of the company in the flotation, below the 25% usually required for new offerings. They have also reported that they are planning to discount the value of the flotation by about £1 billion, with an announcement expected sometime this week.

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