UK-based core banking supplier Misys is to sell £500 million of stock in an intitial public offering on the London Stock Exchange.
The IPO is slated to proceed early next month, as Misys' private equity owners look to cash in on a rising market for software stocks.
The float would prove a boon for Vista Equity Partners, which acquired Misys in 2012 for just £1.27 billion after merger talks between the core banking vendor and Swiss rival Temenos collapsed.
With just 25% of the vendor's stock making its way to market, the valuation is expected to rise as high as £5 billion once trading commences.
Vista is understood to have been looking for a buyer since late 2014, with Singapore's state-owned investment fund Temasek Holdings and Canadian pension funds among those rumoured to have shown interest.
Misys increased revenue and Adjusted Ebidta at a compound annual growth rate of 8% and 11%, respectively, from FY14 to FY16. In the year ended 31 May 2016, Misys generated revenue of €811.4 million and earnings of €293.9 million.
Since delisting in 2012, the group merged with Turaz, the former treasury and risk management software division of Thomson Reuters and undertook an organisational transformation to centralise and streamline the business. It has since overhauled its software stack with an emphasis on open APIs to meet the shifting needs of financial institutions.