Analyst tips Sophos for summer IPO

Security vendor says it is 'looking at all its options' in response to conjecture over ownership

Eight years after Sophos abandoned plans to list itself on the London Stock Exchange, analyst TechMarketView is tipping the security vendor for a summer IPO.

Richard Holway, chairman of TechMarketView, said the British outfit would take the plunge on the London Stock Exchange this summer and felt the move would be positive for Sophos and the market.

"[The listing is] unlikely this side of the general election; it is more likely in the summer at a valuation we would estimate anywhere between $1.5bn (£990m) and $2.3bn. This would not only result in a tidy return for Apax, and other long-standing shareholders, but would be a major fillip for the UK," he said.

"We think valuations are now similar to the US and, indeed, those with good profit and cash records are often more appreciated in the UK. Sophos would be significant on the London exchange and would get continued high exposure – unlike many US IPOs which float only to be forgotten thereafter."

In response to speculation, Nick Bray, chief financial officer at Sophos, said: "Sophos is executing very well as a company within a very hot sector. We continue to beat our FY2015 plan, we continue to achieve double-digit organic billings growth, and we continue to take share from our competitors. And as a result, our customers are safer and better protected against cyber threats.

"Our outlook and confidence in the road ahead have never been brighter. As such, we are certainly looking at all our options and considering what path would be best for our customers, our partners, our employees and our shareholders."

The Oxford-headquartered vendor dropped its planned IPO in 2007 and sold a 70 per cent stake of the company to Apax in 2010.

There has been a flurry of IPO activity recently, with Box going public last month and Alibaba setting the record for the world's biggest ever IPO in September with a valuation of $25bn.