Software, security and cloud services specialist The Bytes Group has made another step toward an IPO.
The Surrey-headquartered firm is expected to list of the London Stock Exchange and Johannesburg Stock Exchange.
In April 2020 it was reported that the firm was to demerge from its parent company, South African tech group Altron in a move designed to o unlock value for Altron shareholders.
Should the Demerger and IPO proceed, on Admission the Company will be the ultimate parent company of Bytes UK and its subsidiaries.
Upon Admission, the firm said it expects to have a distributed shareholder base comprising at least 36% held by new investors, with the balance held by Bytes management (5%) and existing Altron Shareholders. Altron will not be a shareholder going forward
It also expects to be eligible for inclusion in the FTSE UK indices following Admission.
Neil Murphy, Chief Executive Officer of the Bytes Group, said: “After 22 years as an autonomous unit within a diversified technology services group, this marks an important chapter in the development of Bytes.
“We have traded strongly this year-to-date as we have helped our clients adapt to new working patterns and this has resulted in a positive financial performance and continued growth in our customer base. We are confident that Bytes is well positioned to continue to take advantage of the wider digital transformation agenda and deliver on its long-term strategy for growth.”
Patrick De Smedt, Non-Executive Chairman of the Bytes Group, added: “It is a privilege to be joining Bytes as the business prepares for the next stage of its growth on the London and Johannesburg Stock Exchanges.
“We expect shareholders in the Company to benefit from Bytes’ strong relationships with many of the world’s largest software companies, its skilled and dedicated management team, exceptional set of colleagues, diverse and embedded customer base and strong financial track record.
“I have been hugely impressed by the significant growth that the Bytes Group has delivered in recent years and am very excited for what lies ahead.”