Fenergo Is Said to Weigh IPO at $1.5 Billion Valuation
Fenergo Is Said to Weigh IPO at $1.5 Billion Valuation
(Bloomberg) -- Fenergo Ltd., the financial software firm, is considering a potential initial public offering as surging stock prices tempt more European companies to the capital markets, according to a person familiar with the matter.
The Dublin-based company has hired UBS Group AG to advise on options including an IPO, the person said, asking not to be identified as discussions are private. Fenergo is likely to seek a valuation of around $1.5 billion, the person said.
The company, which provides anti-money laundering and data management software to banks, is also considering going public through a deal with a so-called special purpose acquisition vehicle, according to the person.
Fenergo completed its most recent funding round in February, which valued it at $800 million. Its largest investor is Insight Partners with a 65% stake, according to the person. nCino Inc., another financial software business that counts Insight as an investor, almost tripled on its market debut in July and that success has spurred Fenergo’s move toward an IPO, the person said. Other investors include include ABN Amro Bank NV and DXC Technology Co.
No final decisions have been taken and Fenergo could decide against a listing. A representative for Fenergo declined to comment in an emailed statement. A representative for UBS declined to comment.
Fenergo’s clients include BNP Paribas SA, Banco Santander SA and State Street Corp as well as UBS itself, according to the company’s website.
Buoyant equity markets are encouraging more companies to consider listings, even as the coronavirus crisis continues to loom over the global economic outlook. This week, online shopping emporium THG Holdings Ltd. saw its shares surge as much as 32% on their London debut and cloud-data software maker Snowflake Inc. more than doubled on its first day of trading in New York.
While Europe’s IPO market has lagged those in Asia and the U.S. amid the pandemic this year, there are signs of a recovery. A host of companies, including French cloud-computing provider OVH Groupe SAS and German online used-car marketplace Auto1 Group GmbH, are weighing listings in the region, Bloomberg News has reported.
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