Third time’s the charm for cyber security specialist Sophos

Global IT security provider Sophos Group plc has announced plans to launch an IPO and to apply for its shares to be admitted to the premium listing segment of the Official List and to trading on the main market of the London Stock Exchange.

The announcement of the company’s intention to float marks its third IPO attempt, following cancelled IPO plans in 2007 and 2009 due to reduced investor appetite amid the economic downturn. It has been suggested that the recent media spotlight on cyber security may propel the company to success this time around.

In 2010 Sophos was acquired by UK-based private equity and venture capital firm Apax Partners LLP, who currently own a 70% stake. This transaction is of particular interest given the focus over the last few years on private equity-backed IPO exits.

Sophos expects to raise £65 million (approximately US$100 million) with the listing and the company predicts a valuation of around £1 billion which would make it the largest tech IPO ever to take place in the UK.

Jenisa Altink-Thumbadoo, analyst in the Lexis®PSL Market Tracker team.

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