Cyber security firm Avast set for London’s largest tech listing at £2.8bn
Cyber security software company Avast has announced it is planning to float on the London Stock Exchange (LSE) next month.
The company’s initial public offering (IPO) could see the firm valued at $4bn (£2.8 bn), making it London’s largest ever listing for a technology company.
The company, which boasts some 435m users worldwide, is headquartered in the Czech Republic and had a turnover of $780m last year. A source familiar with the proceedings told City A.M. that the company’s public listing, which is expected in early May, will see at least 25 per cent of Avast’s share capital floated, with the aim of raising about $200m in primary proceeds and around $800m through secondary share sales.
Read more: Cyber threat to UK businesses is now bigger than ever, says NCSC
Vincent Steckler, Avast’s CEO, said that the company’s rapid growth had occurred: “because of the dramatic increase in the number and types of threats around the world which are a growing concern to people, and Avast’s ability to stay ahead of the bad guys with new and evolving technologies and products.”
Steckler explained that he expected the consumer cybersecurity market to grow 10 per cent annually, reaching $21bn by 2021.
The market’s growth comes as cyber attacks become increasingly common worldwide – the National Cyber Security Centre (NCSC) found a considerable increase in the number of criminal online attacks faced by UK firms in 2017.
“The last year has seen no deceleration in the tempo and volume of cyber incidents, as attackers devise new ways to harm businesses and citizens around the globe,” said Ciaran Martin, CEO of the NCSC.
Read more: UK businesses unprepared for cyber attacks
Avast, which is backed by private equity group CVC Capital Partners, is one of the top firms in the antivirus market, with a 20.5 per cent share as of June 2017. “Our large user base creates a strong network effect and powers our advanced next-generation security engine which uniquely combines the latest in machine learning and artificial intelligence and big data to keep people around the world safe online,” said Steckler.
John Schwarz, Avast’s independent chairman said: “A listing on the LSE will allow a new generation of investors to benefit from the next phase of Avast’s growth as a public company, and from significant returns through future dividends. The board is very supportive of the Avast team in executing our plans for protecting people’s digital lives.”