Shares in Verisure experienced a notable surge of 20 percent on its inaugural trading day in Stockholm, following a significant €3.2 billion initial public offering (IPO) that could signal a resurgence of public listings across Europe. The company had set the final offering price at €13.25 per share, positioning its market valuation at €13.7 billion. This pricing was at the higher end of the anticipated range and included a combination of both new and existing shares.
By mid-morning, Verisure’s stock was trading close to €16 per share. This IPO has emerged as the largest public listing in Europe since the German carmaker Porsche’s debut three years prior, which raised over €9 billion. It also stands as Stockholm’s most substantial new listing in over two decades.
Austin Lally, CEO of Verisure, expressed satisfaction with the initial market reaction, emphasizing that while the positive response is encouraging, the goal was never a mere short-term spike in stock price but rather a focus on sustainable valuation over time. “This is a long-term growth story,” he stated during an interview.
The backdrop for this IPO is critical, as European public offerings have seen a considerable slowdown over recent years. The success of Verisure’s listing might herald a revitalization of market activities, coinciding with Shawbrook’s announcement on Monday regarding plans to float on the London Stock Exchange, which could become the UK’s largest IPO of the year at £2 billion.
Verisure’s IPO benefitted from substantial investment from cornerstone investors, including Singapore’s sovereign wealth fund, GIC. The company’s owner, private equity firm Hellman & Friedman, opted to retain its entire stake in Verisure during this offering. Stefan Goetz, chair of the company and a partner at Hellman & Friedman, noted their excitement for Verisure’s growth opportunities, pledging continued support as long-term shareholders.
Established in 1988 as part of Sweden’s Securitas group, Verisure specializes in home alarm systems and has enjoyed a remarkable transformation under Hellman & Friedman, who first invested in 2011 when the valuation stood at €2.3 billion. According to sources, the firm has achieved over a tenfold return on its investment in Verisure over the past 14 years. The company reported revenues exceeding €1.8 billion in the first half of the year, marking nearly a 10 percent increase compared to the same timeframe in 2024, along with adjusted earnings of €845 million.
The successful launch of Verisure’s IPO could signal stronger prospects for other private equity-backed companies looking to enter the European market. A banker involved in the deal remarked, “The market needed a success. This is an unequivocal success,” highlighting its significance as a pivotal moment that private equity firms are closely watching.
Additionally, technology investment group Hg is reportedly planning a major IPO for its €19 billion software group, Visma, next year in London. Meanwhile, in the United States, Hellman & Friedman-backed Medline Industries is preparing for an IPO that could value the company at over $50 billion, raising between $4 billion and $5 billion. The unfolding trends in both European and U.S. markets highlight a potentially transformative period for public offerings as confidence returns to the investment landscape.
